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questions and answers about the Government announcement

questions and answers about the Government announcement

The Government will launch a reduction in tariffs and taxes for the automotive sector, with the aim of improving competitiveness and boosting its growth

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The Minister of Economy, Luis Caputoconfirmed that the Government that will launch a reduction in tariffs and taxes for the automotive sector, with the aim of improving competitiveness and boosting its growth. Government that will launch a reduction in tariffs and taxes for the automotive sector, with the aim of improving competitiveness and boosting its growth.

What is export duty exemption and what is it for?

Export duties are taxes charged on exports. Its exemption implies improving the competitiveness of exported goods in international markets and stopping financing the State with foreign currency that should nourish economic activity.

Both automotive terminals and auto parts only pay export duties up to the amount invoiced in 2020 and, once that level is exceeded, they will not pay taxes for the new exports they generate.

What are incremental exports for the automotive industry?

It is the mechanism by which automotive companies that increase their exports compared to 2020 pay 0% export duties for incremental sales abroad. This mechanism improves competitiveness in the foreign market and increases the sector’s exports.

What is the Repostock regime?

This regime seeks to improve the competitiveness of Argentine companies abroad, by eliminating part of the taxes they pay on imported inputs. Establishes conditions and benefits in the temporary import of merchandise for industry and its subsequent export for consumption.

What are temporary imports?

It is the entry of capital goods into the customs territory for a certain period with exemption from import duties. Import duties are a tax collected by customs authorities at the borders.

In this way, temporary imports ensure that the goods do not remain in the country, but provide greater flexibility to producers, as long as they remain in the customs territory.

What is the Promotion of the Automotive Industry-Auto Parts law?

It is a law that seeks to promote investments in the automotive sector and auto parts. It seeks to generate a contribution in terms of production, employment and industrial exports, and aims to promote productive links with high added value in the industry.

It contemplates benefits for investments that are presented until December 31, 2027 as an early refund of VAT. This provides greater dynamism and balance in favor of companies.

Source: Ambito

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