Argentina Cuts Taxes On New Cars By Up To 30 Percent

Argentina has cut excise duties by up to 30% on new cars in a bid to boost local automobile production levels.

Excise duty on car that cost under 350,000 pesos ($27,000) have been cut to 10% from the previous 30% rate while the duty on luxury cars costing more than 800,000 pesos ($61,517) will fall to 20% from the previous 50%.

The Argentinian Production Minister Francisco Cabrera has stated that he expects some $3.8 billion in investments in local auto-making through 2017. The president of ADEFA, Enrique Alemany, praised the government's decision and said the tax cuts would result in more car models and jobs.

The cut in excise duty will last for six months, after which the Argentinian government will review the impact of the lowered taxes and modify them if it is needed.