The Government analyzes a project to reduce taxes on cars

However, days ago information emerged that The economic team was considering skipping the adjustment this month and returning to the original schedule. which has been applied since, during the administration of Mauricio Macri, the quarterly update of the tax base was established by law.

During the mandate of Cristina Fernández de Kirchnerthe adjustment of the value from which the “luxury” tax had to be paid was done on a discretionary basis, which generated uncertainty in companies. With the change introduced by the Macri administration, the mechanism was ordered and worked like this until January of last year.

At that time, after the devaluation of December 2023 and with the sharp increase in 0km prices in January, it was decided to bring forward to February the increase in the tax base that had to be done in March. If not, most cars would have had to pay the tax.

In the Ministry of Industry, according to the specialized site Arodarpost, They are evaluating whether now would not be the right time to join, again, with the correct schedule, as established by law, and leave until March the update that would have to be done starting February 1.

The argument that some officials maintain is that, given that the adjustment to be made, taking into account the drop in inflation, is not important – only 4.16% -, it will not significantly modify the tax scale and could be postponed for a month. .

Tax reduction

Along these lines, the Minister of Economy, Luis Caputo, I would also be analyzing a tax reduction for some segment of vehicles. This is a draft that, at this time, is circulating on the WhatsApp of several Casa Rosada advisors, as revealed by Motor1.com, another site specialized in the sector.

“The project aims at a complete tax reform of the Argentine automotive marketwith the aim that the reductions that are applied reach the pockets of consumers in a real and concrete way: “We do not want to adopt a lukewarm measure, which will fall by the wayside and be absorbed by the profit margins of the automakers and the concessionaires, as has already happened in the past”, comments from the Government. “If the tax reduction managed to impact between 15 and 20% on the cost of cars, brands would have no alternative but to transfer them to the customer’s price, because it would also increase competition between national and imported models,” the portal points out.

According to this source, one of the drafts proposes eliminate internal taxes for imported cars, but only for hybrid models (the degree of “hybridization is not clarified”) and with an FOB value of less than $26,000 (that is, price at the port of origin, before other taxes).

There is also mention of reducing customs tariffs again for cars powered by “alternative energies” (hybrids or electric), although in this case it would be for all brands and models on the market: it would be a way to differentiate itself from the exclusive benefits that the Government of Mauricio Macri applied, initially reserved for terminals friendly to Adefa and with limited spaces.