Argentina to Launch Tariff, Tax Cut for Auto Industry

Argentina’s Economy Minister, Luis Caputo, announced on the 26th that the Javier Milei government has opted to reduce tariffs and taxes to support the local automotive sector. The aim is to “enhance competitiveness and stimulate growth” in this industry, which presently contributes 10% to total industrial production and sustains over 75,000 jobs nationwide, Caputo stated on X (formerly Twitter).

Caputo confirmed the continuation of the exemption from foreign sales duties for incremental exports, a policy in effect since 2021 and set to be formalized and digitized under a regime dubbed “Repostock”.

These measures will enable suppliers to offer vehicle parts at reduced tariffs and taxes, thus lowering the cost of domestically manufactured car components earmarked for export, according to Caputo. “In this context, tariffs on metal molds utilized by the automotive sector will decrease from 35% to 12.6%, while those on plastic injection molds will drop from 24% to 12.6%.”

Additionally, Caputo announced that, commencing June, license tests for model configurations will be mutually recognized with Brazil, “eliminating the need to replicate tests already approved by the neighboring country and vice versa”.

When approached for comment, Anfavea, the entity representing automotive companies in Brazil, stated that it would provide feedback on the matter next week, following the return of executives from the Beijing Motor Show in China.

Source: O Estado de S. Paulo

Click here to read the original text: https://www.estadao.com.br/economia/argentina-corta-tarifas-setor-automotivo/

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