Milei fires tax agency head over controversial streamer tax

Argentine President Javier Milei has dismissed the head of the country’s tax authority amid backlash over a new tax aimed at streamers and influencers.

Florencia Mizrahi, who led Argentina's federal revenue agency known as ARCA, was removed from her position following increasing criticism of the tax regime targeting digital content creators.

The proposed tax plan would require streamers and influencers to report income earned from platforms such as YouTube, Instagram, and Twitch, including revenue from brand partnerships and advertising.

In a statement on X, Milei's office emphasized that his administration will not target digital businesses in Argentina, asserting, “This government will not attack new forms of digital business and reiterates its commitment to work on a simplified tax system.”

The new head of ARCA will be Juan Pazo, a lawyer who was recently appointed as secretary of international economic relations at the Ministry of Foreign Affairs.

Milei's decision to replace Mizrahi aligns with his broader fiscal policy goals. 

During his first year in office at Casa Rosada, which is similar to the United States White House, Milei has pursued extensive economic reforms, including staff reductions and restructuring the tax system.

The tax agency has faced criticism for allegedly high salaries, contributing to internal tensions within the government.

Argentina has been grappling with hyperinflation in recent years, which has led to increased interest in digital assets among its citizens.

Milei's economic policies have sparked considerable debate nationwide. 

While some support his measures for their potential to reduce inflation and stabilize the peso, others are concerned about their impact on 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 this year, down from 209% in September.