Argentina\u2019s government will eliminate the taxation for more than 4,000 industrial exports, Economy Minister Luis Caputo has announced.<\/p>\n
In a post on his personal X account, Caputo said the move is designed \u201cto make local industry more competitive and encourage exports.\u00bb<\/p>\n
Caputo pointed out that the elimination of export duties of around 3 to 4.5 percent on 4,411 products \u00abwill initially benefit 3,580 companies, almost 40 percent of Argentina\u2019s exporters.\u00bb<\/p>\n
The products which will now be tax-exempt were exported for a value of US$3.804 billion last year, detailed the minister.<\/p>\n
This decision responds to pressure from different sectors within the UIA (Uni\u00f3n Industrial Argentina), who last week demanded measures to favour PyME small and m\u00e9dium-sized companies, in particular \u00a0when it comes placing their products abroad.<\/p>\n
Some sectors like iron, steel, aluminium, petchems and the auto industry will continue paying taxes.<\/p>\n
Caputo justified the decision by pointing to \u00abmore ordered public accounts,\u00bb which make \u00abcontinuing to lower these distortionate taxes\u00bb possible.<\/p>\n
Since taking office in December, 2023, President Javier Milei\u2019s government has implemented draconian austerity measures reducing public spending by 4.7 percent of GDP.\u00a0<\/p>\n
The effort has helped lower annual inflation from 211 percent in 2023 to a still high 118 percent last year. Monthly price hikes are now running at between two and four percent.<\/p>\n
Milei\u2019s economic programme included a new loan from the International Monetary Fund (IMF) for US$20 billion along with a further US$ 22 billion from other multilateral organisations.<\/p>\n
Argentina already has a debt of more than US$40 billion with the IMF.<\/p>\n
In return to the recent influx of financial support, the Milei government last month lifted many of the strict currency controls in force since 2019, introducing a new exchange rate whereby the dollar floats between bands of 1,000 and 1,400 pesos.<\/p>\n
Caputo said in his social media post that \u00abthe government will eliminate the export duties for 88 percent of industrial products.\u201d<\/p>\n
He added: \u201cFrom now on, 4,411 products will not have to pay export duties of between three and 4.5 percent on the value of the merchandise.\u00bb<\/p>\n
He detailed that \u00ablast year the exports of these products accumulated US$3.804 billion in value, including farm and other machinery, optics, glass, car parts, watches, preparations by the pharmaceutical industry, cables and insecticides, as well as other \u00a0products with high added value like cosmetics, pumps, plastics and metals, among others.\u201d<\/p>\n
\u00abAlong these lines, last January the Industry & Commerce Department of the Economy Ministry eliminated the export duties on the agro-industrial activities of regional economies and their value chains such as cotton, paper, cardboard, food and beverages, besides reducing the export duties on the main agricultural products,\u00bb he added.<\/p>\n
Caputo assured that \u00abexport duties make these Argentine companies less competitive abroad and discourage them from exporting.\u00bb<\/p>\n
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\u2013 TIMES\/AFP\/NA \t\t\t\t\t\t\t\t<\/p>\n
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