Thursday , October 21 2021

In January the ceilings will rise so less cars pay the internal taxes – 12/23/2018



[ad_1]

The internal taxes on cars were no longer a tax on luxury units after the devaluation: the rate that a year ago increased by 20% the price of units of 60,000 reais, fell step by step as the peso was devalued and today affects virtually all vehicles whose price to the public exceeds $ 32,500, close to 1.3 million pesos. This limit would increase to about $ 50,000, $ 2,000,000

In just under a month, according to market estimates, this rod will be updated according to this year's inflation and many models that are now hit with the internal tax will be excluded from the tax. From then on, according to Minister Nicolas Dujovne announced in September, the amount that this tax is levied will be updated quarterly.

From the Ministry of Production where the price is decided from which the rate governs, they remain silent on the subject. Between the terminals and concessionaires it is estimated that the PAC will increase between 45% and 50% in relation to the 900,000 pesos (wholesale price) that apply as of January 1.

The speculation of manufacturers and sellers is based on the criteria applied by the previous Minister of Production, Francisco Cabrera, who used as reference Consumer Price Index of the previous year. If the current owner of production, Dante Sica, maintains this same criterion, should be based on inflation that only in the first 11 months of the year accumulates an increase of 43.9%.

The internal tax is applied on the price declared by the automotive terminal, or the importer, on the value of the vehicle. That's the wholesale price. Then comes the margin of sales of the concessionaire, which is a non-gray area: depending on the brand, model and margin of the concessionaire, the final price of a unit of 900,000 pesos ranges between R $ 1.2 and R $ 1.3. millions.

That's why a model like the Toyota SW4 today costs the public $ 1,290,000: in the Japanese automaker they chose to sell this model at a "bumpy" price, to avoid exceeding the limit that would increase it by 20% (in fact, the tax has its own "inflation", its incidence becomes almost 23% on the final price). It is not a minor fact that getting this model at this price today is an almost impossible mission.

Other Toyota Hilux units, as well as all domestic and imported pickups sold in the country, are exempt from tax, which applies only to "passenger" vehicles such as sedan style cars, SUVs or mini van.

For example, the Mercedes Benz Vito passenger model produced at the Virrey del Pino factory (Combi 119) is currently taxed at a rate of 20%: its public price is $ 39,900, almost $ 1, 6 million according to the current quotation of the US currency. But an eventual increase of 45% or more of the tax rate would approximate the fiscal limit of a final sale price of around two million pesos, equivalent to US $ 50,000 today. Among other models, the Vito produced in La Matanza would again be exempt.

When will the rate be updated? In the market, they expect it to be practically the day after the CPI's circulation for December, in the first half of January. But some importers are claiming that the tax is suspended directly after the "macro" trend change produced after the devaluation.

"Internal tax has been suspended in 2002After the devaluation of that year, until Cristina Fernández de Kirchner was relocated, when the deficit of the automotive sector began to impact the economic activity as a whole, "said Ernesto Cavicchioli, vice president of the importer of Hyundai in Argentina.

In 2014, the Kirchner government took charge: last year, only the sale of imported cars of last generation generated a deficit of US $ 1 billion. And then the internal taxes were revalued. Macri promised to eliminate them, but only removed one of the two tax bands earlier this year.

"We now have three consecutive months of surpluses in the trade balance." At the same time, along with the devaluation, sales of zero kilometers a year-on-year drop of nearly 50%. Today, there is no point in continuing to charge this tax, "said Cavicchioli, adding that while the units produced in Argentina pay almost 55% of the taxes, in the case of cars produced outside the Mercosur, the State ends up maintaining 60% of the price charged to the customer. "If a 20% tax is also applied, that vehicle is left out of the market, nobody buys it. 20% from zero, it's zero," he added.

[ad_2]
Source link