On Wednesday, August 31, the Minister of Economy of Argentina, Sergio Massa, announced a tax relief to stimulate the exports of automobiles and their parts.
In the city of Zárabe, in greater Buenos Aires, he presented an agreement between the government, unions, and the business sector, which according to the state-run news agency Télam will allow the country to count on a favorable trade balance of US$400 million by the end of this year.
Massa spoke at a Toyota plant. He says the sector “is a priority” for the current government. As Ámbito Financiero explained, under the new scheme, companies in the sector will pay the same tax as before on their exports until they reach the 2020 level.
From that level on, they will have a zero tax rate for the following exports for the remainder of the current year.
The government also said that one of the intentions of this strategy is to increase the country’s foreign exchange reserves.
With information from InfoMoney