Argentina stimulating Mercosur auto exports through tax breaks
Tax refunds have been increased to 6.5% from 2% in hopes to increase exports to countries such as Paraguay, Uruguay, and Brazil, the latter being Argentina’s top overseas buyer.
From January-April, auto production in the country dropped more than 30% to 107,000 vehicles and exports fell 11.4% compared to the same period last year, according to local automakers association ADEFA.
Hit with high inflation and a devaluating currency, Argentina has been facing an economic crisis since mid-2018. Currently, approximately 60% of the local car production is exported, of which most goes to Mercosur countries.