50% Tax On "luxury" Cars

[johnw100]

So we`ve been thinking of buying a new car for a while and now the lovely government has deciding to add 50% tax on luxury imported cars, luxury meaning anything around the $200.000 or higher mark. Which by the time the car we want *may* be available as nobody has it, it`ll probably be in that bracket.
Anyone know more about this story, I read it needs to go through the courts. Which if the legal system is how i think it is, could take years? or is it days?

Thanks

 

[camino no tomado]

I'm curious about this too, since the articles I read in the press were very vague on two issues: (a) whether it's a 50% tax or a 50% hike in the existing rate, and (b) whether the higher rate will apply to the entire purchase price (which would seriously distort the market) or only to the amount exceeding the threshold. Unfortunately my Spanish is not yet sufficient to catch such subtleties and the English-language reports I could find were clearly terrible translations themselves.

Any way you look at it though, that 200,000 peso threshold seems astonishingly low for a "luxury" tax--being about the price of a lightly-optioned Chevrolet Cruze, according to local automaker web sites.

 

[Rich One]

The Actual final increase in luxury cars will be 30% , the dollar rate will be $8,10. see other posting

They plan to raise the tax to 50% for high-end cars


anticipated the chief of staff, Jorge Capitanich , and Economy Minister Axel Kicillof in his first contact with the press. With the desire to stop the steady decline of the reserves, the Government intends to restrict the use of dollars for the purchase of luxury goods. To that end, the Executive submitted a bill that proposes to increase from 12.5 to 50% rate on car purchases over $ 170,000 tax free to other yesterday.
If approved by Congress, the measure would reach not only to imported vehicles but to all transactions that exceed that number. Sources automotive preferred caution until the issue be studied by specialists of the companies and the association of manufacturers, but confirmed that the tax hike includes vehicles from all sources, including domestic production. Discrimination is simply by price, causing concern and surprise in the local industry. Industry sources said this could lead to a reduction in the market.
The rate increase for luxury cars is the hub of the initiative that the Government sent to Congress and the discussion will begin next week in the House of Representatives. The idea of ​​the ruling is that the bill becomes law as soon as possible, so it is expected to be included on the agenda of meetings in December. It is not yet defined whether the extension of the legislative year will be through the extension of the regular meetings or call a special session.
The initiative, which is signed by Capitanich, Kicillof and Production Minister Debora Giorgi proposes amendments to Law 24,674, of internal taxes. This rule imposed on luxury goods, including automobiles. It is estimated that by buying imported vehicles leave the country between $ 300 million and $ 400 million per year.
Articles 1 and 2 of the project, only four articles, the new rates will apply to those assets down, if Congress becomes law proposed by the Executive. It was also determined that the new tax will only affect "operations whose sale price, excluding taxes, including optional" over $ 170,000.
The rate is 50% for all land transport vehicle referred to in Article 38 of the Internal Revenue law.There are mentions "those designed for the transport of persons, excluding buses, buses, trolleybuses, buses, cars and cell ambulance cars", "preparations for camping [camping]" and "aircraft, airplanes, seaplanes, gliders and helicopters designed for pleasure or sports. "
The initiative a differential rate for motorcycles and boats, categories for which the floor is not $ 170,000 but $ 22,000 is fixed. In the case of motorcycles, a rate of 30% for transactions between $ 22,000 and 40,000 sets. Above that amount, the tax is 50 percent. As for "boats designed for pleasure or sports and out-board engines," a 30% rate for operations of $ 22000-170000 fixed. The pay that amount exceeding the rate of 50 percent.
Today the rate that applies to the purchase of these vehicles is 10% to 12.5%. As established their own internal revenue law, the Government may by order to raise up to 25 percent. As he wants to take 50% should send a bill to Congress.
"It's much more important to have an Argentine essential for the development of the productive chain of industrial, export and promote employment, to buy a luxury car input" argued Capitanich in contact with the press [background=rgb(73, 187, 227)]..[/background]

 

[Gringoboy]

...and this coming from Capitanovich who owns a small fleet of Learjets.
Un f*****g believeable.

 

[ghost]

...and this coming from Capitanovich who owns a small fleet of Learjets.
Un f*****g believeable.

They all own a small fleet of something. Every time I think the US congress is a bunch of useless assholes I think of this operation and yes, grasshopper it can get worse.

 

[Raymond]

Last chance for car buyers! 50% tax hits next week.
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If you are thinking of buying a car, get your reserve in before end of next week. I have it on good authority that the bill is to be passed next week, the rest of the car market will surely follow though probably not to the same degree.
If you are thinking about buying a car here in Buenos Aires, think faster.​

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[Matiasba]

What I heard is that begins from USD 25,000 or even more. Its like 275,000 pesos.

I find this measure, and any tax for the rich, by definition, fine.

 

[French jurist]

Does it apply to new vehicles or also to used ones? (didn't search)

 

[camino no tomado]

What I heard is that begins from USD 25,000 or even more. Its like 275,000 pesos.

So the 170,000 and 200,000 peso figures that have been bandied about were just trial balloons?

I find this measure, and any tax for the rich, by definition, fine.

Matias, I too lose very little sleep worrying about how the wealthy are faring. But I find it odd that you'd associate US$25,000 cars with "the rich". Of course standards are relative, but to add some perspective, even the higher $25k figure is below the average transaction price for new cars in frugal Canada ($27k) ... to say nothing of the US ($31k).

As I said above, it's an astonishingly low threshold for a "luxury" tax. I'd have no objection to increasing taxes on true (imported) luxury vehicles, but at this level Argentina's own domestic auto industry (which has only recently begun to thrive) is also likely to be harmed. It's a very short-sighted move.

 

[ajoknoblauch]

I just bought a used 2005 Suzuki Grand Nomade (120,000 km) in Santiago for about US$9600. What would it cost in BsAs?