BUENOS AIRES – President Mauricio Macri’s economic Cabinet is cutting taxes on automobiles and motorcycles “to boost production,” the Production Ministry said.
The ministry lowered the tax on cars priced above 350,000 pesos ($26,315) to 10 percent “with the goal of increasing production and facilitating investment in the sector.”
The tax will be 20 percent on motor vehicles priced above 800,000 pesos ($60,150), the ministry said in a statement.
Some 99 percent of the motorcycles manufactured in Argentina “will not pay taxes” and only bikes priced above 65,000 pesos ($4,887) will have a 10 percent tax, the ministry said.
A 10 percent tax will be imposed on the production of boats priced above 400,000 pesos ($30,075).
The executive order, which will be in effect for six months, providing time to observe the impact on the industry, is to be published Wednesday in the Official Gazette.