Year-end surprise: the Government changes the withholding scheme for thousands of products

The government seeks that, with higher added value, there are less withholdings Credit: Archive

On the last day of the year and through the publication of decree 1060/2020 in the Official Gazette, the Government modified the Export rights of industrial and agricultural products with the axis being that, the more value added, there are less withholdings, according to official sources.

In this way, 4,593 tariff positions were modified (3,641 industrial and the rest of agriculture) and the aliquots became 4.5%, 3% or 0%.

The industrial final goods and basic inputs go to 0%, such as motorcycles and parts and accessories; the industrial processed inputs go to an aliquot of 3% and the raw Materials industrial and industrial inputs remain in 4,5%.

Some products that paid a fixed amount of pesos per dollar exported will now pay a percentage, which will allow the collection not to be liquified in the face of a devaluation of the peso. This is what happened all year, with minor movements.

This is the case of wine, for example, that from $ 3 for every dollar exported, it will pay 4.5%. In this sense, Francisco Do Pico, vice president of Bodegas de Argentina, explained that this measure represents a increase of one percentage point with respect to what is paid for export duties.

However, he felt that in general it was not a bad year in terms of measures to boost exports, since the sector had their refunds doubled from 3.5 to 7%.

“In absolute terms, we have two and a half points in favor against 12 months ago. This is a measure that is not positive for us in terms of export encouragement, but we have to admit that two months ago our refunds increased, which implies an annualized impact of US $ 30 million “, added in dialogue with THE NATION.

For his part, in his Twitter account, the economist and official of the Ministry of Productive Development, Leandro Mora Alfonsín, said that the decree is “a step in the ordering of industrial policy stimuli, within the framework of the fiscal and budgetary restrictions of 2020 “.

“The forward agenda is to deepen the downward path of export duties, to continue calibrating export strategies with sectors in the Economic and Social Agreement and to continue SME tools to encourage the internationalization of Argentine added value”, Hill.

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