BUENOS AIRES — Argentina’s government on Friday enacted tax and regulatory benefits for its auto industry in a bid to promote investment and boost exports.
The law grants tax benefits for investments in machinery and infrastructure to manufacturers of vehicles and auto parts and eliminates export tariffs for production under the new regime.
Argentina is seeking to increase exports to strengthen central bank international reserves, which if successful could help support its depressed local currency.
“The more employment is generated, the lower taxes will be; the more exports are generated, the lower the levels of taxes to be paid,” Economy Minister Sergio Massa said in a ceremony at Ford Motor Co’s plant on the outskirts of Buenos Aires.
Massa added the government expects exports in 2023 will exceed the 190,000 vehicles forecast for this year and soar 70% from 2019’s level.
The auto industry is the second-largest source of exports for the country, according to Martin Galdeano, president of Ford Argentina and the Association of Automotive Manufacturers. He said the law establishes a regulatory and tax framework that creates favorable conditions for investment, production and employment. (Reporting by Eliana Raszewski; Editing by Cynthia Osterman)