The Government formalized the extension for this year of the application of zero withholdings to incremental exports of the automotive industrythrough decree 81/2023 published in the Official Gazette.
It specified that “for the purpose of determining incremental exports, the surplus resulting from comparing the FOB value of all exports made by each company during 2023 will be considered, with respect to those that would have been made during 2020.”
During the past year, 536,000 units were manufactured, between cars and utilities, which marked an improvement of 23.5% compared to 2021
The Minister of Economy, Sergio Massa, brought forward at the beginning of the year this extension of the incentive created in 2020.
“It is a way of rewarding the investment, the Argentine work, and the effort,” said Massa.
During the past year, 536,000 units were manufactured, between cars and utility vehicles, which marked an improvement of 23.5% compared to 2021, and the highest production in the last eight years, in a difficult context due to the lack of tires.
In addition, exports totaled 322,286 vehicles, with an increase of 24.3%.
“We envision for 2023 a minimum production scenario of 620,000 vehicles,” said Massa, who estimated that “370,000 of those cars produced in Argentina will go abroad.”
For his part, The Association of Automotive Factories (Adefa) highlighted that the extension of zero withholdings for incremental vehicle exports during 2023will allow the sale of 70,000 additional units equivalent to about US$ 1,700 million.
