The Minister of Economy, Luis Caputo, assured that the changes in the COUNTRY TAX From this Monday they will impact on a decrease of prices in September. However, Businessmen were cautious in all sectors And while they say that the price reduction will not be “immediate,” they also estimate that it is more likely that certain products will not see a price increase throughout the month. One by one, which products will be the most affected.
Automotive sector
“Prices would surely have to go down 4/5% but It’s been two months since they have hardly increased and this would be the third month, so the tax reduction remains neutral,” said one of the sector’s representatives in conversation with Ámbito.
Cell phones and other electronic items
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.
Food products
The Ministry of Economy is making progress in dialogue with supermarkets and consumer goods companies to lower prices. Last week, the third week of August, Food and beverages recorded an increase of 0.3%an acceleration of 0.4 percentage points compared to the previous seven days. In the month, the sector accumulates an inflation of 1.5%according to the consulting firm LCG.
In this sense, the sector assures that the greatest impact will be seen in imported products such as canned goods or coffee capsules. Regarding other products, there are still negotiations throughout the chain and There will not be an immediate impact as the Government expects.
Importation of machinery and fertilizers
According to a report prepared by the Rosario Stock Exchange (BCR), The cost of importing goods is expected to decrease, which could have an impact in the near future on the price of imported products used by the countryside and agroindustry.
In the case of agricultural machinery, Argentina is an importing country of different implements, agricultural parts and final goods used in the sector. In 2023, imports were made at CIF value for US$528.6 million among the main products linked to agricultural machinery, below the US$657.9 million of 2022. If we consider the On average over the last 5 years, the agro-industrial sector imports around US$528 million annually. in relation to this type of products.
Therefore, it can be thought that the reduction of the Country Tax would have a Positive fiscal impact of US$52.8 million in annualized terms.
Source: Ambito
