The government of Argentina announced the suspension of domestic taxes, currently at 20 percent, for cars priced in an equivalent range of $47,000 to $75,000.
For cars priced above $75,000, the domestic taxes will be reduced from 35 to 18 percent.
According to Luis Caputo, minister of economy, the lower taxes will impact the final price of the vehicles by 15 to 20 percent, allowing for an increase of sales.
The local auto sector association, ADEFA, issued a note approving the measure and added it is “a correct way to economic progress”.
Domestic sales of cars in 2024 increased in Argentina by 1.1 percent to 411,000 units from 2023, but according to ADEFA, a large share of these sales is composed of imported cars.