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LatinNews Daily - 18 January 2021

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In brief: Argentina changes export duties for automobile sector

* Argentina’s government has announced changes to its tax withholding scheme for automobile exports, according to which the automobile industry’s incremental exports will not be subjected to export duties. Incremental exports are the sales which exceed recorded exports for the previous year. Argentina’s secretary for tax policy, Roberto Arias, noted that the plan for 2021 is to maintain export taxes for the automobile sector at the same 4.5% rate as last year, but to zero export duties on the so-called incremental exports. “The measure seeks to promote exports, while defending fiscal responsibility”, Arias explained. The secretary for economic policy, Fernando Morra, further explained that 2020 was a bad year for exports due to the coronavirus (Covid-19) pandemic, that incentivising high value-added exports was a priority for the post-pandemic economic recovery, and that the zeroing of export duties would encourage investment to increase external sales in the automobile sector.