The World Bank has approved a $300 million project aimed at improving the efficiency, effectiveness, and transparency of Argentina's tax administration. The initiative seeks to simplify procedures, automate administrative processes, and provide clear and timely information to taxpayers.
"This project’s approval is part of a comprehensive program with the World Bank, providing clear support for the priorities of President Milei's administration: fiscal balance, economic openness, and institutional strengthening. The project will help consolidate the tax policy and administration reforms we've been working on from day one, since we truly believe we need to create the right conditions to promote private investment, which is what really drives sustainable growth and job creation in Argentina," stated Pablo Quirno, Secretary of Finance at the Ministry of Economy of the Argentine Republic.
While Argentina's tax system is an important source of revenue for the country, government officials have identified areas where improvements can be made as part of ongoing reform efforts. The new project aims to optimize the tax structure by broadening tax bases, increasing collection efficiency, and promoting equity in order to establish a fairer and more modern system.
"We support Argentina's efforts to advance towards a more progressive tax system that simplifies interaction with ARCA and encourages voluntary compliance," said Marianne Fay, World Bank Division Director for the Southern Cone.
Key features of the reform include simplifying procedures and services so that taxpayers can access information more easily. New pre-filled forms are expected to reduce administrative burdens by automatically incorporating relevant taxpayer data into digital processes. This measure is intended to minimize errors and facilitate access to public or financial services. Additionally, authorities are developing a risk management approach designed to focus oversight where it is most needed.
ARCA's online platform will also be enhanced to offer broader access to data and improve transparency. These upgrades are expected to streamline how information is managed while supporting better tax analysis and planning over time.
The financing for this project comes in the form of a variable-spread loan that will be reimbursed over 32 years with a 7-year grace period.