The tax pressure for 0km production doubled in one year

The tax pressure for 0km production doubled in one year

The high tax pressure makes the cars manufactured in the country, increasingly, more difficult to export. This is confirmed in the latest data released by the association that brings together local terminals (ADEFA).

According to April statistics, Argentine 0km sales abroad fell 33.6% in the last 12 months and accumulated a drop of 18.4% in the year-on-year comparison of the first four months.

Although the current Government established a series of measures to encourage exports (surplus sales compared to those made in 2020 are exempt from the export duty), They are not yet in force because the decree that, according to sources consulted, would come out in June has not been signed.. Only then would the impact be felt on the activity of this sector.

Added to this is the increase in production costs in dollars due to the December devaluation.

At ADEFA they prepared a study – to which he had access Ambit- which shows how the tax pressure for production grew from March 2023 to today. The data is conclusive: it doubled in that period.

At that time, the tax burden was 12.5% ​​made up of taxes such as Gross Income, Debits and Credits and municipal taxes, plus withholdings.

That month it went between 15.5% and 18.5%, depending on the models, after a resolution by the AFIP that modified the perceptions of Profits and additional VAT for imports of inputs.

In July it rose to between 15.5% and 20.5% due to the application of the PAIS Tax for imports from suppliers.

In December, the COUNTRY Tax on the dollar for imports was increased to 17.5% and brought the tax pressure to 23.5%.

As it is not updated, the benefit of eliminating withholdings on incremental exports reached 24.7%.

Meanwhile, other countries in the region that manufacture cars have a tax scheme that encourages exports. In Brazil, the tax burden on production is around half that of Argentina and Mexico, directly, there are no taxes on production and the tax burden falls only on marketing. Therefore, that country is the cheapest to produce vehicles in Latin America.

Source: Ambito

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