Economy Local 2025-12-07T16:40:26+00:00

Argentina Raises Tax Threshold for Vehicles

The Argentine government raised the threshold for the internal consumption tax on new cars, leading to expectations of price drops for high-end models. Experts estimate prices could fall by 13.71%.


Argentina Raises Tax Threshold for Vehicles

Buenos Aires, Dec 7 (NA) -- The Tax Collection and Customs Administration (ARCA) updated the scale of internal consumption taxes applicable to vehicles, raising the threshold from which new cars must be taxed. This adjustment immediately raised expectations of significant price reductions for the most expensive cars on the market. According to the Argentine News Agency (Agencia Noticias Argentinas), the official ARCA update came into effect on December 1, 2025.

Exemption and Potential Savings The main change lies in the base value subject to the tax: Previous Threshold (Until Nov 30): ARS 63,166,936.50 (without VAT). New Threshold (From Dec 1): The floor was raised to ARS 74,314,009.43. This modification means that cars with sale prices up to ARS 102,600,000 are now exempt from this tax.

The Tax Expert Tax expert Sebastián Domínguez detailed that, if automakers decide to pass the benefit on to the public, the reduction in the final price could be up to ARS 16,311,923, representing an approximate decrease of 13.71% in the total price.

Automakers' Strategy and the Risk Despite the potential for price drops, analysts warn that the extent of the reduction will depend on the commercial strategy of each brand and the evolution of the exchange rate. Domínguez pointed out that the devaluation of the peso could limit the scope of this reduction, as automakers might choose to: • Compensate for losses with more moderate price increases. • Not lower prices, as some brands tend to "cap" the values of certain models to avoid paying the internal tax.