The prices of the Cell phones and other electronic items will go down during September as a result of the ten-point drop in the PAIS Tax rate. Something similar will occur with imported food and beverages.
Starting this Sunday, the rate will drop from 17% to 7.5%, ten percentage points that will translate into lower prices.
Several cell phone brands in Argentina decided to move forward with the implementation of a price reduction that reflects the impact of the measure on the product line.
According to what the Argentine News Agency was able to find out, In principle, this drop in prices will be seen during September, becoming more evident in the following months.
The Minister of Economy, Luis Caputo, assured that the changes in the PAIS Tax starting on Monday will generate a drop in prices and his team has already made progress in dialogue with supermarkets and mass consumption companies to ensure that this happens.
Businesses say the price cuts will also cover many foods and drinks, including canned goods, which could help lower the cost of living.
The impact of imported inputs on the product must be analyzed, as well as the cost structure designed, to know how much it will impact.
In addition, the dollar exchange rate used to plan purchases must be taken into account. The calculation is not linear, business people explain.
Supermarkets and consumer companies are awaiting the importers’ decision in this regard.
Since the Government decided to lower import tariffs on basic goods in March and extended these benefits in July, supermarkets began to import more food and cleaning products, with the entry of bread, condiments and canned goods leading the way.
In recent weeks, some multinationals have also begun to do so, bringing in household hygiene products and coffee in particular.
The biggest impact will be seen in canned goods such as tuna, fruit cocktails and gardenia or coffee capsules due to the impact of the reduction of the PAIS Tax on materials such as aluminum and steelfor which the Government also lowered the import cost this Thursday.
In household appliances and electronicsSome cell phone brands are considering lowering prices next week, while manufacturers of washing machines, air conditioners and other household equipment are waiting for the measure to be implemented to analyze its impact before making a decision.
With these sales, For private consulting firms, there is a chance that it will break 4% in August and reach around 3% next month.
Last week, the third week of August, food and beverages registered an increase of 0.3%, an acceleration of 0.4 percentage points compared to the previous seven days. In the month, the sector has accumulated an inflation of 1.5%, according to the consulting firm LCG.
Source: Ambito
