Since Argentina stands out for having the most expensive cars in the region, mainly due to high tax pressure, the measure seeks to relieve the impact of these taxes.
The Government announced a reduction in taxes to imported luxury cars, as confirmed on Tuesday, the Minister of Economy, Luis Caputo. Since Argentina stands out for having the most expensive cars in the region, mainly due to high tax pressure, the measure seeks to relieve the impact of these encumbrances and, from next week, reduce taxes that affect the final prices of vehicles. The measure also includes motorcycles.
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“From next week, we will eliminate taxes to reduce the prices of cars and motorcycles. Internal taxes will be eliminated for cars of between 41 and 75 million pesos, which until now paid an aliquot of 20% and It will reduce the aliquot for cars from more than 75 million, from 35% to 18%. This will impact on a reduction in the sale price of these vehicles between 15% and 20%, which will surely produce an increase in market demand. Besides, The tariffs for the importation of low price electric and hybrids will drop to zero with the intention that there are more economical vehicles options. There will be an annual quota of 50 thousand cars to be imported in this category. Additionallyinternal taxes will be eliminated from a price of between 15 and 23 million pesos, which until now paid a 20%tax “, Luis Caputo explained through his X account.


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We keep going down taxes
From next week, we will eliminate taxes to reduce the prices of cars and motorcycles.
Internal taxes for cars of between 41 and 75 million pesos will be eliminated, which until now paid an aliquot of 20% and is …
– Totocaputo (@luiscaputoar) January 28, 2025
The market estimates that with this tax reduction, prices could be reduced by 20% in some models, Although that will depend on the form of implementation and the decision made by each brand according to the demand.
The so -called “luxury tax” until now is divided into two sections: the first is 20% (with an effective load of 25%), which affects vehicles whose sale price to the public exceeds $ 40,500,000. The second section reaches 35% (with an effective incidence of 54%) for models whose price exceeds $ 90,000,000. However, pick-ups and utilitarians, considered work vehicles, are exempt from this tax. Some of the models that are within the first category include the Toyota SW4, Ford Bronco Sport, Volkswagen Taos Highline and Tiguan, among others.
What taxes pay cars in Argentina
In Argentina, More than half of the price of a car is made up of taxes. The high tax burden that affects the 0 km car not only impacts imported vehicles, but also those manufactured locally. As cars incorporate more equipment and characteristics, taxes to be paid also increase, resulting in higher prices than in other regions.
According to a report prepared by César Litvin, the final value of each vehicle in Argentina is influenced by three types of taxes: national, provincial and municipal. Besides, Three categories of cars are distinguished: those produced locally, the imported extrazone and intrazone.
National Taxes:
- VAT: Applies to the purchase of new vehicles with an aliquot of 21%.
- Internal taxes: Also known as luxury tax, it is updated quarterly per ark and has two sections: the first of 20% (with an effective charge of 25%) for cars that exceed $ 40,500,000 and the second of 35% (with a load effective 54%) for vehicles of more than $ 90,000,000.
- Banking Debit and Credit Tax: This tribute taxes bank transactions at 0.6% for each debit and credit, which, when accumulating throughout the production and commercial process, generates an approximate incidence of 2.8%.
- Profit Tax: This tax taxes the net profit of commercial activities with an aliquot of 35%, which impacts 4.5% on the price before taxes.
- Patient and art contributions: They represent 8.2% of the sale price before taxes.
- Corporate Participation Tax: This tax on the capital of the companies has an estimated incidence of 0.36% on the price before taxes.
- Import tariffs: Even when a vehicle is produced in Argentina, many of its inputs are imported. This cost represents approximately 6.37% of the sale price before taxes.
Provincial taxes:
- Gross income: This tax is applied at each stage of the economic process, with an estimated incidence of 5.54% in the sale price before taxes.
- Stamps tax: It has an incidence of 2.6%.
Municipal Taxes:
- In several municipal jurisdictions, a rate on the sale of vehicles is charged, which generates a triple or quadruple imposition on the same good. The incidence of this tax is 2.8% on the sale price before taxes.
As a result of this tax accumulation, the final price of a car in Argentina is significantly increased. A vehicle produced locally has a tax load of 53.4% if only VAT is considered. This figure increases to 74.9% if the first section of the internal tax is applied, and can reach up to 99.7% if the second luxury tax scale is paid.
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.