Argentina will eliminate import tariffs on certain low-cost electric and hybrid vehicles starting next week, while also cutting taxes on higher-priced cars and motorcycles, Economy Minister Luis Caputo announced on X (formerly Twitter) on Tuesday.
Tariff Exemptions for 50,000 EV Imports
Under the new policy, up to 50,000 imported low-cost electric and hybrid vehicles will be exempt from import tariffs per year. The move is aimed at boosting adoption of clean energy vehicles and making EVs and hybrids more affordable for Argentine consumers.
Tax Cuts for High-Priced Vehicles
In addition to the tariff exemptions, Argentina will also implement tax reductions for locally available high-priced vehicles:
- Cars priced between 41 million pesos ($39,047) and 75 million pesos ($71,428): No longer subject to taxes.
- Cars priced above 75 million pesos: Tax rate cut from 35% to 18%.
Additionally, motorcycles priced between 15 million pesos ($14,286) and 23 million pesos ($21,904) will also be exempt from taxes.
Argentina’s Shift Toward EV Adoption
The tariff and tax changes align with Argentina’s broader efforts to promote electric mobility and reduce reliance on fossil fuels. By lowering the cost barriers for EV imports and luxury vehicle sales, the government aims to stimulate demand and modernize the country’s automotive market.
Argentina’s decision to remove tariffs on low-cost EVs and hybrids, while cutting taxes on high-end vehicles, marks a significant shift in its automotive policy. As global demand for electric vehicles grows, this move could encourage greater EV adoption and investment in the country’s green transportation sector.
