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Cars over $3,120,000 will pay the "luxury" tax
This is because the amount used for the tax calculation will go from $2,012,678, which is currently in force, to a factory or distributor value of $2,216,200. The number arises from an adjustment of 10.11%, corresponding to the increase in wholesale prices of vehicles in the quarter (SIPM) of April, May and June.
To this taxable value must be added the payment of 21% VAT plus the commission margin of the commercial network of 15%.
Due to the different ways of computing the lien and the possibility that this margin may be waived, there is no single retail price, but the reference value is around $3,120,000. Until the end of August, the models that must pay are those that are above $2,900,000.
Due to the method of calculation of Internos, a rate of 20% is equivalent to a price increase of around 25%, which means that the models that are affected are left out of the market. That is why the brands tend to keep the 0 km that are around that price just below that limit to avoid paying the tax surcharge.
Once the new base is updated, the models that are "capped" close to the tax base will have an increase to the public according to the variation of the wholesale index, that is, 10%.
If the price of the "blue" is taken, the 0 km of more than 17,500 dollars "ticket" must be taxed. This affects imported models but also some national ones.
This tax is designed to tax luxury goods, but the vehicles that will be affected belong to a medium segment. Keep in mind that the cheapest 0 km on the market start at $1,500,000.
In the case of the second scale, with a rate of 35%, the tax base goes from $3,715,714 to $4,091,446. In this way, models of more than $7,960,000 must pay taxes. Also, due to the way this tax is calculated, the prices of the models reached, with this additional 35%, causes a 50% increase in the public price.
This tax has been applied for years with different levels of intensity. It began to have relevance in the government of Cristina Fernández de Kirchner, it was raised to a record level since 2014, it only dimmed –despite the fact that it had been announced to eliminate it– during the presidency of Mauricio Macri and they once again had a greater impact since the arrival by Albert Fernandez. In fact, the method of calculation was modified (before it was for general inflation, as established in the Cambiemos government) to move to a wholesale index.
