Luxury tax on cars: what the first price lists of the year say and how much the 0 km has increased

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After a January with low levels of sales for what is usually the first month of the year, car brands they begin to publish the first price lists after the government announced new tax minimums for the so-called luxury tax.

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It is a tax that applies two rates based on certain values: one is 20% and the other is 30%. But since it is done net of other taxes, the impact on the sales price is 25% and 53% respectively.

This tax It was instrumented by Axel Kicillof ten years agowhen he was Minister of Economy of the Government of Cristina Fernández de Kirchner, with a more brutal original scheme: a first scale with a tax of 35% which ended up being affected by 50% of the final value and a second of 50% represented a 100% price increase.

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With the Government of Mauricio Macri there was an important change: the percentages of the first and second scales were modified, which became 10% and 20% respectively, with impacts of 11% and 25% on the price the final. Then Alberto Fernández increased the rates again to keep them at the current percentages.

In all cases, what this tax did was generate price distortions and construct fictitious price lists. Inflation and price acceleration collided with an update to the tax minimum that was adjusted just as quickly.

A tax that reaches the most popular

This ended the tax that had been created with the alleged intent of “defending the national industry”. falling on models produced in the country and on the lower ranges From the market. The only ones who survived were the pick-ups and commercial vehicles.

The collapse occurred between late 2023 and early this year. For December, the first scale minimum tax base should have been paid by models that had a retail price above 14.7 million pesos.

The Peugeot 208, one of the most popular, had almost all versions of its range at the same (fictitious) price.

Thus were born the versions of the popular Fiat Cronos and Peugeot 208, the two best-selling cars in the country and of national production, which were covered by the internal tax and which brought their list prices to almost 20 million pesos.

But the increases did not fully reflect the December devaluation. Another increase was therefore expected for January but never arrived because the luxury tax remained unchanged. If they had been done, all 0km would be covered by that tax.

After some initial rumors that Javier Milei’s government would eliminate the tax, an update to the tax minimums was published last week with a large increase.

In this way the first scale, which until now applied to models that cost more than 14.7 million pesos on the list price, will now be from 28 million pesos. The 20% rate is maintained.

In the first month of the year there was a sharp decline in sales.In the first month of the year there was a sharp decline in sales.

The same goes for the second scale. Until now there were models that had a list price exceeding 32 million pesos and now that taxable minimum reaches 61 million pesos. And the 30% rate is maintained.

New prices

With these changes, and already with a lost January, brands are starting to publish their price lists with increases especially in the lower ranges. The fact is that they were the only models left on the verge of entering the tax.

Many companies prefer to make their official values ​​public directly with the February price list. Below is a review of the companies that have already published and some of their models with comparative prices with the latest reference (in many cases these are “fictitious values” to avoid paying the internal tax).

Citroën

  • C3 PureTech Live package

Old price $14,246,900 / New price $16,800,600

  • C3 PureTech Feel Look

Old price $14,246,900 / New price $17,808,600

  • C3 VTi First Edition

Old price $14,246,900 / New price $19,233,300

  • C4 Cactus VTi feel

Old price $14,246,900 / New price $17,238,700

  • C4 Cactus VTi AT Senti +

Old price $19,867,900 / New price $21,014,100

  • C4 Cactus THP AT Black

Old price $23,406,700 / New price $23,766,800

Fiat

  • Chrono Like 1.3 GSE

Old price $14,582,000 / New price $18,081,700

  • Cronos Drive 1.3 GSE CVT Pack Plus

Old price $14,582,000 / New price $18,500,000

  • Cronos Style 1.3 GSE

Old price $19,551,500 / New price $22,100,000

  • Cronos Precision 1.3 GSE CVT

Old price $21,042,900 / New price $23,800,000

  • Pulse Drive 1.3 MT5

Old price $14,582,000 / New price $17,790,000

  • Pulse Audace 1.0 CVT

Old price $24,336,700 / New price $26,000,000

  • Pulse Impetus 1.0 CVT

Old price $25,124,800 / New price $27,000,000

Jeeps

  • Renegade 1.8 Sport

Old price $26,402,400 / New price $28,57,500

  • Renegade Longitude T270 AT6

Old price $31,863,000 / New price $38,000,000

  • Renegade Trailhwak T270 4×4

Old price $31,863,000 / New price $39,830,000

  • Compass Sport T270

Old price $31,863,000 / New price $39,830,000

  • Longitude Plus T270 compass

Old price $31,863,000 / New price $39,990,000

  • Compass Trailhwak TD350 4×4

Old price $56,474,000 / New price $53,700,000

Peugeot

  • 208 1.2 New Like

Old price $14,246,900 / New price $15,814,100

  • 208 Active active

Old price $14,246,900 / New price $17,411,300

  • Charm Pack 208

Old price $118,159,500 / New price $20,897,400

  • 208 Feline

Old price $19,699,900 / New price $22,503,600

  • Patagonian Partner 1.6 petrol

Old price $14,246,900 / New price $18,521,000

  • Patagonia Partner 1.6 HDi

Old price $14,246,900 / New price $19,233,300

Nissan

  • Versa Sense MT

Old price $14,250,000 / New price $16,000,000

  • CVT Versa Advance

Old price $14,250,000 / New price $20,000,000

  • Versa-exclusive CVT

Old price $31,090,000 / New price $26,000,000

  • Kick the sense

Old price $14,250,000 / New price $18,000,000

  • Advance CVT kicks

Old price $1,250,000 / New price $22,000,000

  • Kicks off the exclusive CVT

Old price $31,090,000 / New price $34,000,000

Toyota

  • Etios X 5 doors

Old price $10,631,000 / New price $12,927,000

  • Etios XLS Pack MT 4 Doors

Old price $12,935,000 / New price $15,729,000

  • Etios XLS AT 5-door package

Old price $13,317,000 / New price $16,193,000

  • Yaris XS 5 doors

Old price $12,661,000 / New price $15,0790,000

  • Yaris XLS 4-door CVT package

Old price $14,532,000 / New price $17,802,000

  • Corolla XLI CVT

Old price $14,662,000 / New price $18,325,000

  • Hybrid Corolla XEI

Old price $24,955,000 / New price $24,642,000

Volkswagen

  • Polo track

Old price $14,180,300 / New price $17,016,400

  • Polo MSi MT

Old price $14,414,300 / New price $18,640,900

  • Polo Highline 170TSi AT

Old price $14,753,000 / New price $21,138,850

  • Nivus 170 TSi

Old price $14,753,000 / New price $18,854,550

  • T-Cross Comfortline 200 TSI AT

Old price $28,409,700 / New price $24,165,750

Source: Clarin

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