Argentine President Javier Milei has fired the head of the country’s tax authority amid backlash over a controversial tax targeting streamers and influencers. 

According to local media reports, Florencia Mizrahi, who had served as the head of Argentina’s federal revenue agency, known as ARCA, was removed from her position following growing criticism over a new tax regime targeting streamers and influencers in the Latin American country. 

The tax plan would require digital content creators to report income generated from social media platforms, such as YouTube, Instagram and Twitch, including earnings from brand deals and advertising. 

In an announcement on X, Milei’s office stated that his administration won’t target digital businesses in the country:

“This government will not attack new forms of digital business and reiterates its commitment to work on a simplified tax system.”

The agency will now be headed by Juan Pazo, a lawyer who had recently been announced as secretary of international economic relations at the Ministry of Foreign Affairs. 

Related: Argentine president to allow provinces to circulate own currencies

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Source: Argentina’s Oficina del Presidente

Argentina in the era of Milei

According to local media reports, behind the leadership overhaul is Milei’s fiscal policy. During his first year at Argentina’s Casa Rosada — akin to the United States White House — Milei sought deep economic reforms in the country, including staff reductions and a restructuring of the tax system. The tax agency faced criticism for allegedly high salaries, leading to internal tensions within the government.

Argentina has been fighting hyperinflation in recent years, which boosted the popularity and adoption of digital assets.

Milei’s economic policies have sparked significant debate across the country. While some praise his measures for reducing inflation and stabilizing the peso, others express concern about their social impact on the most vulnerable.

Data from Trading Economics reveals 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.

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Consumer prices in Argentina over the past 5 years. Source: Trading Economics

Related: Argentina overtakes Brazil in crypto inflows — Chainalysis