“Auto dollar”: eliminate withholding taxes on car manufacturers that export the most

After a year and a half of back and forth, the government will implement the elimination of withholding taxes on exports of vehicles and auto parts that exceed those of last year. In this way, the terminals and auto parts companies that pay taxes today rates between 3 and 4.5% from now on they will pay 0% export duty until the end of the year due to the increase in overseas sales.

The provision was made official in March 2021 with decree 150, but it had not yet been regulated. The tax relief will be announced this afternoon during a ceremony at the Toyota plant in Zárate, chaired by the Minister of Economy, Sergio Massa, and the Secretary of Industry and Production Development, José Ignacio De Mendiguren, together with the directors of the terminals. located in ADEFA and representatives of the business unions, UOM and SMATA.

Massa seeks to accelerate exports and currency settlement in the middle of the difficulty unlocking grain sales in the countryside and strengthen the reserves of the Central Bank.

It will also be announced in the next few hours a relaxation of stocks for the mining industry to access the exchange rates. “It goes in line with the promotion of key sectors they have earning potential in foreign currencysuch as mining and hydrocarbons “, underlined sources of Economy.

According to official sources, “until 31 December 2022 both terminals and auto parts will only pay export duties at current rates up to the amount of exports invoiced in 2020 (4.5% or 3%) and, once exceeded, 0% will be taxed on new exports – or incremental exports -, with the aim of promoting exports of certain auto parts to new markets and improve competitiveness of the automotive sector “.

Car exports in July totaled 22,937 units, 1% less than last year, when 23,177 vehicles were shipped to other markets. Compared to June there was a decline of 28.1%, while In the first seven months of the year, 24.4% more was exported than in the same period of 2021, according to ADEFA data. In 2021, $ 7.1 billion was exported, according to INDEC data.

The regulation of the decree, already signed by De Mendiguren and which will be published in the Official Gazette, was finalized in the middle of Negotiations with car manufacturers and auto parts companies over import restrictions. In several meetings, companies have complained about the lack of dollars to be able to purchase supplies overseas. In fact, a terminal revealed that this month it has been on several occasions on the verge of deficiency paralysis.

This Wednesday’s event also takes place in a context heated by the wage conflict between the tire union (SUTNA) and the producers of the sector, which already More than five months have passed and could affect the auto industry. In this framework, Massa will appear together with the head of ADEFA, Martín Galdeano, the president of Toyota, Gustavo Salinas, and that of Ford, Carlos Galmarini, as well as the executives of Volkswagen and General Motors.

On the union side there will be the head of Smata, Ricardo Pignanelli, and his equal of the UOM, Abele Furlanwho days ago was with Máximo Kirchner and was enthusiastic about a presidential candidacy from Cristina Kirchner.

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