Argentina: Internal tax rate reduction on electric and electronic products manufactured within the Special Customs Territory of Tierra del Fuego
Description
On 7 April 2009, the Government of Argentina established, through Decree 252/2009, a reduction in the rate of the Internal Tax (“Impuestos Internos”) applicable to some electric and electronic products manufactured within the “Special Customs Territory of Tierra del Fuego, South Atlantic Islands and Antarctica” (the “Tierra del Fuego Free Zone”) . By virtue of this decision, the rate applicable to products eligible for the benefit will be reduced to 38.53% of the general rate.
This reduction in the Internal Tax rate will result in that electric and electronic goods produced in the Tierra del Fuego Free Zone and re-exported to the Argentine Continental Customs Territory (which encompasses the whole territory of the country with the exception of the Tierra del Fuego Free Zone) will receive a more favorable tax treatment than the one granted to: (i) like products manufactured within the Argentine Continental Customs Territory; and (ii) like products imported from foreign countries. In fact, when announcing the measure, the Ministry of Production acknowledged that this measure would “strengthen the position of electronic goods produced in Tierra del Fuego vis-à-vis the imported ones”.
Entry into force of the measure was postponed several times, and it was finally put into effect by Law 26.539 of November 20th, 2009.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 21/09/2009
Implemented: Yes
Date of inception: 23 Nov 2009
GTA Evaluation: Amber
Source:
Decree establishing the measure (Decree 252/2009): http://www.infoleg.gov.ar/infolegInternet/anexos/150000-154999/152117/no...
First decree postponing entry into force of the measure (Decree 784/2009): http://www.infoleg.gov.ar/infolegInternet/anexos/150000-154999/154993/no...
Second decree postponing entry into force of the measure (Decree 1162/2009): http://www.infoleg.gov.ar/infolegInternet/anexos/155000-159999/157292/no...
Law that put into effect the measure (Law 26.539): http://www.infoleg.gov.ar/infolegInternet/anexos/160000-164999/160514/no...
Internal Tax Law: http://biblioteca.afip.gob.ar/gateway.dll/Normas/Leyes/%20internos/tor_c...
Law establishing the Tierra del Fuego Free Zone: http://www.infoleg.gov.ar/infolegInternet/anexos/25000-29999/28185/norma...
Media coverage: http://www.infobaeprofesional.com/notas/80686-Apuntalan-polo-industrial-...
Government Response:
- 1205 reads
