Milei eliminates export taxes on cars to boost industry

In a significant move for Argentina's industrial sector, President Javier Milei has announced the complete elimination of export taxes on automobiles, a measure set to take effect from July 2026. This decision, detailed in La Nación, is a clear signal of the government's commitment to fostering economic growth by reducing the burden of state intervention on businesses.

The elimination of these export taxes, which currently stand at 4.5%, is designed to level the playing field for Argentine automakers. With direct competition from countries like Brazil and Mexico, which do not impose similar levies, and the global rise of Chinese brands, Argentina needed to act decisively. The government views this as a crucial step to enhance the competitiveness of its products on the international stage, potentially attracting new investments and projects.

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We are going to continue lowering taxes, we are going to continue shrinking the size of public spending to be able to return the money that belongs to good Argentines.

This policy aligns with Milei's broader economic philosophy of shrinking the state and expanding the market. By removing these taxes, the government aims to return resources to productive sectors, encouraging greater freedom and prosperity. The phased reduction, starting in July 2026 and reaching zero by June 2027, provides a clear roadmap for the industry. Experts like César Litvin, CEO of Lisicki, Litvin & Abelovich, have long argued that export taxes are among the most distortive taxes, significantly impacting product competitiveness. This move is seen by industry leaders as a vital step towards regaining a competitive edge in the global automotive market.

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It affects the competitiveness of our products in a decisive way.