The elimination of the PAIS tax, which represents 7.5% on import costs, promises to alleviate part of the costs that automotive companies faced in their production and distribution chain.
The announcement of the elimination of COUNTRY taxscheduled for the end of the year, is already having an impact on the automotive market. Two of the country’s main automakers, Toyota and Ford, reported reductions in the prices of their vehicles as part of this measure that seeks to alleviate the tax burden on consumers.
Toyota Argentina confirmed that it will apply a reduction of 3% on the prices of its models imported from Brazillike the Toyota Yaris, Corolla and Corolla Crosson the December lists. Regarding locally manufactured vehicles, such as the Toyota Hilux and SW4the reduction will be 1%since these models have a high percentage of domestic auto parts, which implies that their cost is less influenced by import taxes.
On the other hand, Ford Argentina announced an average reduction of 1% on your price lists. However, by absorbing the effect of the crawling peg – the monthly adjustment of the official exchange rate, estimated at 2% – the real impact on prices could reach up to 3%. This seeks to maintain the brand’s competitiveness and benefit buyers, especially in a context where inflation and import costs have put pressure on the sector.
The elimination of the PAIS tax, which represents a 7.5% on import costspromises to alleviate part of the costs that automakers faced in their production and distribution chain. These initial reductions could be the start of a trend in the auto industry, with more brands possibly following the lead of Toyota and Ford in the coming months.
In this way, consumers could find more affordable prices in an economic context where the cost of new vehicles had risen significantly in recent years.
Source: Ambito
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