The national government officially announced today the removal of export duties, commonly known as withholdings, for a wide range of products in the industrial sector. Among the sectors benefiting from this tax relief are the chemical, pharmaceutical, textile, and agricultural machinery industries, among other manufacturing sectors.
According to previous statements from the Minister of Economy, Luis Caputo, this decision aims to 'benefit 3580 companies', representing about 40% of the exporting firms in the country. The measure has generated questions from the Argentine Industrial Union (UIA), which expressed concern about its potential impact on local production and employment.
Additionally, in April, progress was made in the deregulation of the importation of used capital goods by eliminating the requirement for the Used Goods Import Certificate (CIBU) and lifting prohibitions on certain machinery, including equipment for oil and gas extraction.
In the past, during 2024, the Ministry of Economy had already reduced import tariffs for 89 products, including tires (from 35% to 16%), motorcycles (from 35% to 20%), small household appliances, coffee, and personal hygiene products, among others. The official argued that the withholdings 'affected the competitiveness' of these companies in external markets and constituted a 'disincentive to export'.
The considerations of the decree reaffirm these objectives, stating that the removal aims to 'increase sales to external markets, promote the national industry and its exports, and encourage value addition and job creation'. This action adds to a series of modifications in foreign trade implemented by the administration of President Javier Milei since taking office.
Last January, a temporary reduction of withholdings on grains (soy from 33% to 26%, wheat from 12% to 9.5%) was applied until the end of June, while the duties for regional economies were eliminated. In March, the Executive Power ordered a reduction in import tariffs for textile products, decreasing rates for clothing and footwear (from 35% to 20%), fabrics (from 26% to 18%), and yarns (from 18% to rates between 12% and 16%).
The measure, which impacts more than 4400 items, was formalized through Decree 305, published in this Wednesday's edition of the Official Bulletin. The provision covers 4411 specific tariff positions that until now had been taxed at rates between 3% and 4.5% on the FOB value of the exported goods.
