It Takes Two to Tango – Argentine Tax Authority Juggles Producers and Resellers

Amid sweeping efforts by President Milei’s government to reform Argentina’s tax administration, the country’s tobacco tax stamp programme is an important step towards such reform. While the programme has helped Argentina’s tax authority reconcile production volumes with the number of products actually sold and taxes paid, there is an ongoing price disparity in the market, between manufacturers and resellers, that is ultimately resulting in less tax going to the government.

For many years, the Administración Federal de Ingresos Públicos (AFIP) was Argentina’s government institution in charge of tax and customs revenues and regulations. When Javier Milei arrived in office, in December 2023, analysts predicted drastic budget cuts and a push to greater government efficiency, but no one expected so many changes... and so quickly.

Nevertheless, Milei has been steadily proving that he has every intention of complying with his campaign promise to fight corruption and improve government functions. While the first part of his promise is proving more difficult to achieve, he has already made advances toward increased efficiency – or, at least, reduced government spending.