The so-called “luxury tax” that Federal Public Revenue Administration (AFIP) Fees on zero kilometer vehicles would be collected starting from a certain amount 100% or more above the current levelwhich is a retail price of just under 15 million pesos.
Once the values from which the two tax brackets will be collected have been updated, The updating of these values would become monthlytaking as reference the Wholesale price index (IPM) which measures the Indec.
From December 1st, in the last days of the previous government, the first internal tax scale of 20% came into force (which due to the accumulation of taxes has an impact on the final price of the products 25%) concerns all vehicles that exceed a retail price of 14.7 million pesos (a wholesale price of 10.3 million pesos, before applying 21% VAT and 15% retailer commission).
The second staircase, 35% and with an impact on the final price of 50%, a public price equal to is applied between 27 and 28 million pesos (wholesale price of $19.3 million).
According to official sources, the decision of Javier Milei’s government is to continue collecting the two scales of internal taxes, but with two important changes.
The first scale would be charged starting from an amount more than double the currentwith which small and medium-sized vehicles they would no longer be reached.
The second staircase would also be applied from a higher floor. But, most importantly in this case, the rate could be reduced from the current 35% to 20%.
Within the automotive and dealership sectors, a rumor had spread in the final days of 2023 that the Government would remove the first ladder of internal taxes, which already reaches locally produced versions of small-to-medium vehicles, such as Fiat Crono and Peugeot 208.
In the Government, however, there would be consensus on maintaining the two scales, but with a much higher threshold.
“There is a fiscal necessity to be addressedbut the idea is that small cars are not affected as has happened recently,” the sources add.
Internal taxes on cars have been applied with different rates and regimes since the 1990s, but the current tax was increased during the second presidency of Cristina Kirchner to penalize the growing income from high-end cars that were registered in those years . This is why it was initially called the “luxury tax”.
The Macri government reduced the first tax scale to 10% and the second to 20%. Subsequently, new changes were made, mainly to the taxed amounts, which excluded both small and medium-sized cars from the tax.
Alberto Fernández’s government raised the rates to 20% and 35% and established an updating mechanism which was initially annual and in the last section, after the arrival of Sergio Massa at the Ministry of Economy, it became quarterly.
Even so, with inflation escalating, prices are zero kilometer They quickly reached the levels set by AFIP. In this way today there are versions of national models such as Fiat Cronos (GSE CVT pressure) I all versions of the Peugeot 208 whose buyers They have to pay an additional 20% tax.
Pick up, because they are considered “commercial vehicles”, are exempt from paying this tax. Added to this is that buyers pay a VAT of 10.5% and not 21% as in the case of cars and SUVs. There is one of the keys on the predominance of pickup trucks in local sales charts.
Source: Clarin
