According to Cointelegraph, Argentina's President Javier Milei has dismissed Florencia Mizrahi, the head of the country's federal revenue agency, ARCA, following widespread criticism over a proposed tax targeting digital content creators. The tax plan aimed to impose reporting requirements on income generated by streamers and influencers from platforms like YouTube, Instagram, and Twitch, including earnings from brand deals and advertising.
In response to the backlash, Milei's administration announced on X that it would not pursue measures against digital businesses, emphasizing a commitment to developing a simplified tax system. The leadership of the tax agency will now be assumed by Juan Pazo, a lawyer recently appointed as Secretary of International Economic Relations at the Ministry of Foreign Affairs.
The leadership change is part of Milei's broader fiscal policy agenda, which has been a focal point during his tenure at Argentina's Casa Rosada. His administration has pursued significant economic reforms, including staff reductions and a restructuring of the tax system, amid criticism of high salaries within the tax agency. These reforms come as Argentina grapples with hyperinflation, which has increased the popularity and adoption of digital assets.
Milei's economic strategies have sparked considerable debate across Argentina. While some commend his efforts to curb inflation and stabilize the national currency, the peso, others are concerned about the potential social impact on the country's most vulnerable populations. Recent data from Trading Economics indicates that consumer prices in Argentina rose by 193% year-on-year in October 2024, marking the sixth consecutive month of disinflation and the lowest increase of the year, down from 209% in September.