MercoPress. South Atlantic News Agency

Argentine gov't to eliminate export duties from 4,411 items

These “taxes affected the competitiveness of these Argentine companies abroad,” Caputo explained

Economy Minister Luis' Toto' Caputo announced Wednesday that the Argentine government will eliminate export duties on 88% of industrial products, affecting 4,411 items and benefiting 3,580 businesses (nearly 40% of exporters).

The measure aims to boost industrial exports, which reached US$ 3.804 billion in 2024. Products like auto parts, agricultural machinery, cosmetics, pharmaceuticals, plastics, and metals are included, while sectors like iron, steel, aluminum, petrochemicals, and parts of the automotive industry remain excluded.

“By means of the Decree that will be published in the next few days in the Official Gazette, the National Government will eliminate export taxes on processed products, which will give competitiveness to the local industry and will promote exports. The measure will initially benefit 3,580 companies, almost 40% of those exporting in Argentina,” Caputo said in a statement.

“In 2024, the value of exports of these products accumulated US$3,804 million. These include agro-parts, foundry products, agricultural machinery, optics, glass, auto parts, machinery and equipment, watchmaking, blood preparations, or hormones made by the pharmaceutical industry, such as tubes, cables, and insecticides. Also, to high value-added products, such as cosmetics, engine parts, and auto parts, such as pumps, valves, or gears, plastics, and metals, among others,” he added.

“The reorganization of public accounts makes it possible to continue lowering distortionary taxes. Along these lines, in January 2025, the Secretariat of Industry and Commerce of the Ministry of Economy eliminated export duties on agro-industrial activities of regional economies and their value chains, such as cotton textiles, paper, cardboard, food, and beverages, in addition to reducing withholding taxes on the main agricultural products,” Caputo further noted.

These “taxes affected the competitiveness of these Argentine companies abroad and discouraged them from exporting. With this measure, industry will be practically exempted from paying these taxes, except for some widespread basic input sectors such as iron, steel, aluminum, and the petrochemical industry, and the automotive industry,” he also pointed out.

The initiative follows earlier tax reductions for agro-industrial sectors. The Argentine Industrial Union (UIA) supports the measure, noting its low fiscal cost and significant microeconomic benefits, particularly for SMEs.