35% LESS

THE ARGENTINE GOVERNMENT PLANS TO ELIMINATE THE TAX ON IMPORTING PCS AND TABLETS

This measure aims to lower the sales value of imported technology products by at least 12% by 2017.

The Argentine government plans to eliminate the tax on importing PCs and tablets
TECHNOLOGY DEVICES

Martes, 08 de Noviembre de 2016

Estimated reading time: 3 min.

As the Government had announced weeks ago, the 35% tax charged on the import of electronic products, such as computers, notebooks and tablets, will be eliminated.

Despite the protests of local manufacturers, the Ministry of Production moved forward with the project with the aim of reducing prices, improving the quality of computers, and increasing the productivity of companies in the country.

"Our north is competitiveness. Argentina is the country in the region where computers They are more expensive due to lack of competition. This extra cost is paid by all citizens. The State has the responsibility of making technology accessible to those who employ it, but fundamentally it has to contribute to reducing the digital divide. We are going to do it by taking care of employment," said Miguel Braun, Secretary of Commerce of the Nation.

Neighboring countries

According to data from the production portfolio, in Argentina today a computer costs 80% more than in Colombia, 50% more than in Chile and almost triple that in the United States. It is expected that with this measure the prices of these devices will decrease by at least 12 percent.

The Negative

The Government is not unaware that the measure will have "unfriendly" effects on the local industry. In fact, it is estimated that around 1,000 employees will see their job continuity affected.

According to official sources, the Ministry of Labor and Production are working with unions, companies, and workers to accompany the transition with a plan that includes: training, labor insurance and agreements with new employers, where "the State will cover up to 50% of the salary for one year." In turn, workers will be able to voluntarily participate in the labor transformation program to reorient their careers towards the most dynamic sectors, with job demand and opportunities for genuine competitiveness. That is to say, reintegrate into other companies.

Among the most affected companies are Newsan, Positivo BGH, Exo, Novatech, Coradir, Lucaioli, Digital Fueguina and Radio Victoria, among others.

The reach also reaches Cellphones and televisions

The Government could extend the reduction of tariffs on the import of electronic products, to televisions, cell phones and other devices, in order to expand access to better technology.

"We want the best and latest technology. There are other sectors of the Government that are working for that," added the Minister of Communications, Oscar Aguad at the Council of the Americas in New York.

The plan includes the common tariff of Mercosur, in addition to internal taxes and national import tariffs.

What's Not Said

For over a decade, technology companies have been manipulating the tech economy by controlling the prices of related products. Initially, they claimed the products were manufactured in Argentina, when all they did was assemble them. These companies not only apply exorbitant profit margins, but in return, they deliver outdated technology that is no longer sold in other countries—a complete disgrace to domestic consumption.

The result of this assault on the end consumer is clear: those who can afford it cross into Chile, Brazil, Bolivia, and Paraguay to obtain higher quality products at lower prices. Even after paying customs duties, it's still more convenient to buy abroad. The rest eagerly await the government's adjustment of profits for these exploitative businesses and a more global benefit, allowing for the reactivation of the stagnant tech trade. recent times.

Updated on: 08/11/2016 00:00:00

Source of Information: La Nación / BigBangNews / Code Dimension

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