Argentina to levy “luxury tax” on cars costing over US$17,500
RIO DE JANEIRO, BRAZIL – As from September 1, the tax on “luxury” cars will impact models costing over US$17,500 (ARS 3,120,000), as a consequence of the increase in the taxable base to be introduced by the Argentine Federal Revenue (AFIP).
The tax is intended to be levied on luxury goods, yet the affected vehicles are in the mid-range segment. It should be noted that the cheapest 0 km cars in the market start at US$15,500.
This tax has been in force for years to a greater or lesser extent.
It began to gain importance under the presidency of Cristina Fernández de Kirchner, it rose to a record level since 2014, and was only lowered during Mauricio Macri’s presidency – despite an announcement to eliminate it – and its impact has been greater since Alberto Fernández took office.
In fact, the calculation method has been changed (it was formerly based on the general inflation set by the Cambiemos government) to a wholesale index.
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