The president of Leasing Argentina and director of BICE, Nicolás Scioli, and the head of ACARA, Sebastián Beato, held a meeting this day to agree on a proposal to modify the cap of 20,000 pesos deductible from Income Tax.
Leasing Argentina and the Association of Automotive Dealers of the Argentine Republic They agreed to work to reduce car financing costs and raise the current Income Tax deduction limit for vehicle amortization, which currently stands at $20,000.
The president of Leasing Argentina and director of BICE, Nicholas Scioli and, the owner of ACARA, Sebastian Blessed, They held a meeting this day to agree on a proposal to modify the cap of 20,000 pesos deductible from Income Tax and thus reduce the cost of financing car operations via leasing.
“This amount has been in force by law since the 1990s and at that time convertibility allowed a broad deduction of Income Tax. The passage of time and the devaluation of the peso made it now an insignificant figure”said Scioli after the meeting with the directors of ACARA.
For his part, Beato commented that “in addition to the proposal to increase deductions and improve the amortization of cars purchased as working capital, we will stimulate their financing through the CreAr lines, promoted by the Secretary of Industry at a discounted and convenient rate. “.
Both parties estimated that the modifications should be promoted through a law, to later adjust annually for inflation.
The $20,000 limit arose in the 1990s.with the enactment of Law 24885, when the cost of the most affordable cars was around 13,000 pesos, with which the amortization represented approximately 15% of the total value of the vehicle.
This value also implies an annual deduction of $4,000 pesos taking the 5 years of a car’s useful life.
The objective of this joint proposal will result in the cost of purchasing a vehicle for all those who are taxed on Earnings.
Leasing Argentina and ACARA also agreed to propose to those interested in buying vehicles for production financing through the CreAr lines (subsidized rate) promoted by the Secretary of Industry.
Source: Ambito
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