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Argentina Eliminates Luxury Car Tax as Senate Approves Reform, Prompting Immediate Price Cuts

The change ends a 12-year levy that skewed vehicle prices across the market.

Overview

  • The Senate passed the government’s labor-and-tax package that removes internal duties on vehicles, with new March price lists reflecting the repeal.
  • Initial updates show cuts nearing 30% on select Ford imports, a result the company ties to the tax repeal plus an estimated benefit from a proposed 10,000‑unit U.S. import quota that still awaits congressional approval.
  • Mercedes-Benz preempted the shift with a 10% discount plan on affected models, while other importers kept units in fiscal deposit to avoid nationalizing them under the old regime.
  • Audi indicated reductions of roughly 10% to 12% once the rule is in force, with BMW, Toyota and Lexus preparing model-specific adjustments rather than uniform decreases.
  • Analysts expect a cascade of re-pricing for mid-high SUVs, some high-spec pickups and, after a delay, used cars, with pass-through varying by brand strategy and dealer stock.