More expensive card dollar: is it advisable to buy technology abroad?

The national government increased the taxes applied on purchases in foreign currency with Credit and debit cards and, consequently, the value of dollar for these cases it rose to $957.22.

Thus, through the Official Gazette, the Federal Public Revenue Administration (AFIP), increased the collection of Income Tax to 100%, to which is added the 25% collection of Personal Property and 30% of the PAIS tax. This modification brings the dollar price for these operations closer to the MEP, the Cash with Settlement and the blue dollar, reducing the incentive for arbitrage between both quotes.

Card dollar: what consumption does the new increase affect

The rise in the card dollar, equating the quotes, will affect the following consumptions:

• Purchase of banknotes and currencies in foreign currency for hoarding or without a specific destination (savings dollar).
• Goods and services abroad, portals or provided from abroad (all)
• Services and transportation via travel and transportation agencies abroad or destination outside the country
• Import of merchandise (Dec 99/2019)

A survey carried out by different media compared the prices of various technology products sold in Argentina and, for example, in the United States. The results were surprising: the vast majority of items are available cheaper in the northern country, even considering the increase in dollar card.

Card dollar: price simulator after the increase

Samsung Galaxy Tab S6 Lite 10.4″ 64GB: in the country it has an approximate value of $299,999, while in the United States it is sold for about US$200, which is equivalent to a card dollar at $190,000. Even if shipping is added, the value amounts to $259,300.

ASUS Vivobook Go 14 14″ Celeron 4GB 128GB Notebook: in Argentina it costs $410,000, while in the United States it is sold at US$432either $410,400 to the card dollar. If shipping is added, The value amounts to $581,400.

Lenovo LG5 15.6″ Ryzen 7 8GB 512GB SSD Notebook: in Argentina it sells for $1,265,000, while in the United States it sells $740about $703,000 per card dollar.

iPhone 14 (128GB): in Argentina $1,300,000 is sold on a Marketplace platform, while in the store of the brand’s official distributor it is sold $2,660,000. In the United States it comes out US$699 in the official Apple storeor some $665,000 to the card dollar.

Dollar card: the explanation

There are several factors that explain this price difference. First of all, inflation at the local level is very high, which makes all products, including technological ones, more expensive. Secondly, domestic taxes are high, which also affects prices. Finally, the official exchange rate is also far behind the real dollar, which makes imported products more expensive.

This situation has several negative consequences for Argentine consumers, since it makes it difficult for them to access quality technological products at reasonable prices. Secondly, iIt encourages illegal trade, since many Argentines prefer to buy imported products informally to save money.