Introduction to the Announcement
Manuel Adorni, the presidential spokesperson for the Argentine government under Javier Milei’s administration, announced in a press conference that the government will eliminate import tariffs on mobile phones through a decree. The changes, to be published in the Official Bulletin, will take effect this Thursday or Friday.
Tariff Reduction Stages
Adorni explained that the tariff reduction will occur in two stages. In the first stage, import tariffs on mobile phones will decrease from 16% to 8%, with immediate effect following the decree’s publication. In the second stage, tariffs will be reduced to 0%, taking effect on January 15 of the following year.
Additionally, internal taxes on imported mobile phones, televisions, and air conditioners will be lowered from 19% to 9.5%. For products manufactured in Tierra del Fuego, the tax reduction will be from 9.5% to 0%.
Price Disparities and Impact
Adorni highlighted the significant price differences between Argentina and other countries for electronic devices. For instance, a 5G mobile phone in Argentina costs twice as much as in Brazil or the United States. He mentioned that people were traveling abroad to purchase mobile phones due to their high cost in Argentina.
According to official calculations, a computer costs 1,931 USD in Argentina, while it is priced at around 900 USD in Chile. Adorni estimated that the overall tax reduction would lower imported electronic products’ prices by approximately 30%, bringing Argentina’s prices in line with its neighbors.
He also mentioned that, as fiscal surplus stabilizes, the government will continue to lower taxes. “The Government has reduced 19 taxes, equivalent to 2.5 points of Argentina’s GDP,” Adorni pointed out.
Moreover, the measures are expected to decrease smuggling and theft of mobile phones, similar to the reduction in car and tire thefts due to tax cuts and import deregulation for auto parts.
Tierra del Fuego’s Response
Gustavo Melella, the governor of Tierra del Fuego province, expressed concern over the new measures announced by the national government.
“The announcement of the National Government to eliminate tariffs on mobile phone imports and reduce internal taxes on televisions and air conditioners is a very harsh blow to the Tierra del Fuego industry,” Melella stated on his X account.
He emphasized that the Fuegian industry represents employment, sovereignty, and high-quality technological development unique to the province. Melella argued that this measure responds to the agreement with the IMF, which demanded the elimination of perceived benefits for Tierra del Fuego.
Government’s Response
Adorni responded to Melella’s concerns on the same social media platform, stating, “Estimado Gobernador: lo entendemos perfectamente. Al kirchnerismo se le terminan los privilegios y por eso están nerviosos. No hay nada que temer. Señores, la libertad avanza.”
Key Questions and Answers
- Who announced the tariff reduction? Manuel Adorni, presidential spokesperson for the Argentine government under Javier Milei’s administration.
- What is the purpose of the tariff reduction? To bring Argentina’s prices for imported electronic devices in line with neighboring countries and reduce smuggling and theft.
- What are the stages of tariff reduction?
- First stage: Tariffs on mobile phones will decrease from 16% to 8%, taking effect immediately after the decree’s publication.
- Second stage: Tariffs will be reduced to 0% on January 15 of the following year.
- What internal taxes will be lowered? Internal taxes on imported mobile phones, televisions, and air conditioners will be reduced from 19% to 9.5%. For products manufactured in Tierra del Fuego, the tax reduction will be from 9.5% to 0%.
- Why is Tierra del Fuego concerned? The province’s governor, Gustavo Melella, is worried about the impact on the local industry, which he considers essential for employment, sovereignty, and high-quality technological development.
- What is the government’s stance on further tax reductions? As fiscal surplus stabilizes, the government intends to continue lowering taxes. The administration has already reduced 19 taxes, equivalent to 2.5 points of Argentina’s GDP.
