Pablo Sibilla, CEO of the rhombus brand, said that Adefa submitted a proposal to the Ministry of Economy with tax changes that favor the competitiveness of local exports.
The loss of competitiveness of Argentine automotive companies to place products in the foreign market led to the sector, grouped in the Association of Automotive Factories (Adefa)will present to the Government a request for tax reform, where the main change they propose is that the taxes are applied to consumption and not production.
“We understand that today the country’s priority is to regularize fiscal accounts. In the sector we are more focused on the country’s competitiveness towards exports,” he expressed. Pablo Sibilla, president of Renault Argentinaon Monday night after the presentation of the new Megane E-Tech 100% electricperformed at the Teatro Colón.
The intention to modify the tax scheme had been anticipated by Ambit, and in recent days consultations have accelerated following a report by the consulting firm Miglino & Asociados that indicated that Argentina has the most expensive cars in the world. Sibilla, in this context, referred to the meeting that Adefa held with officials from the Ministry of Economy.
“A car that is exported from Argentina includes between 22 and 25% taxes. The same car that Brazil exports, 7% taxes. And the same car that Mexico exports, 0%. So, when you compete for investments with other plants in Latin America, the parent company looks at the competitiveness to export that vehicle to another market,” he mentioned. Sibilla. “But if we start with 20 points above taxes on industrialization… that is a bit what we propose,” said the president of Renault.
After pointing out that there was interest in the ministry he commands Luis Caputo and that ministry officials “noted several of the issues,” Sibilla asked that in addition to short-term problems, a long-term “strategy” should be thought about. “We have to be super honest: this does not come from three months ago. Taxes and taxes have been accumulating for many years, and today we reached this situation,” said the manager. “Consumption should be taxed, if you want… but not production, like other countries do,” he said. in relation to the automotive companies’ proposal and which will be followed by technical teams from Adefa and the Government, with the intention of meeting every “two or three months.”
Sibilla remembered the Brazil’s industrial plan with advertisements for more than US$20,000 million. “Those investments that our own parent companies announce, which are also on both sides of the border… let’s try as much as we can to get them to come to Argentina. For that we have to give certain conditions. And the tax part on investments is one of them. It is not the only one, but it is one,” concluded the president of Renault.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
