The sector of notebookscell phones, computers and monitors represent approximately one third of the country’s IT market
The electronic products In Argentina they register a higher price compared to other countries in the region. The high tax burden and tariffs that are applied in the national territory contribute to these high values, and consequently, a collapse in sales.
In Argentina, products that are always in high demand such as cell phones or notebookshave higher prices than in countries like Chili, Colombia and even Brazilwith costs up to 60% and 70% higher. According to data from the Chamber of Wholesale Distributors of Information Technology, Producers and Related Products (Cadmipya)sales of this type of products decreased by 58% during the first half of the year, compared to the same period last year.
The sector of notebookscell phones, computers and monitors represent approximately a third of the country’s IT market, with a turnover of 220 million dollars, compared to the 525 million registered in the same period of the previous year. There are also reports from the private sector that detail a 33% drop in retail sales of household appliances in the first half of this year.
High taxes contribute to lower demand
The high tax burden and tariffs applied in Argentina are the arguments cited by experts in the field. The Ministry of Economy is confident that the numbers can improve after the reduction of the PAIS tax, from 17.5% to 7.5%, although no changes are anticipated in the 16% tariff in the country.
This tax burden is around 66%, which includes a tariff import tax of 16%, a VAT of 10.5%, an additional VAT of 10%, a withholding tax on profits of 6%, a withholding tax on gross income of 2.5%, and the aforementioned PAIS tax of 16.6%.
In the cases of Brazil, Chile and Colombia, taxes have values of 55%, 26.1%, and 19% respectively.
Source: Ambito
