The Automotive companies grouped in Adefa informed the Government that wait for 2022 that vehicle production has an increase of 28.3 percent and that exports register the same with 34.3 percent year-on-year. According to these projections, the industry would recover the volumes registered in 2015. The improvement would be mounted on the good records of 2021, which closed with improvements of 69 percent and 88 percent in production and exports, respectively, which allowed firms to exceed the level of activity prior to the pandemic.
The representatives of the automotive companies rounded off a week with high-profile meetings: they met last Wednesday with the president, Alberto Fernández, and the Minister of Productive Development, Matías Kulfas, and this Tuesday they did so with the Chief of the Cabinet of Ministers, Juan Manzur, the Hall of Scientists of Casa Rosada.
One of the axes that dominated both meetings was Oil the automotive lobby in favor of the Law on investment promotion and the sustainable mobility project, which could be dealt with in extraordinary sessions.
“In both cases, these are initiatives worked together in the private and public sector, which provide a predictability horizon for the sector as a whole to be able to plan the business in the medium term in the face of global and local challenges ”, said the president of Adefa and head of Ford’s local subsidiary, Martín Galdeano.
*Investment promotion: In the middle of last year, the Government sent to Congress a bill that provides benefits such as the early refund of the Value Added Tax (VAT), accelerated amortization in the Income Tax and export duties of 0 percent until December from 2031 to new investment projects aimed at higher production, exports and employment in terminals and auto parts companies.
The benefits would operate for exclusive platforms regionally and with minimum levels of national content and growing as the production process progresses. Productive projects should be screened by the enforcement authority. The initiative could be included in the projects to be discussed during the opening of the extraordinary sessions, this summer, in the National Congress.
*Electromobility Law: It is another of the projects that could be debated in the extraordinary sessions. It seeks the gradual replacement of internal combustion vehicles by electric cars to reduce CO2 emissions and at the same time develop national technology and industry. The project contemplates tax benefits on investments and on production, such as the early refund of VAT, accelerated amortization in the Income Tax, extension to 10 years of the period for compensation of losses foreseen in the Law of Tax on Earnings and deduction of the financial burden of the financial liability. In turn, the incentives for production include different types of tax credit certificates. The benefits are tied to meeting export goals, creating jobs, improving technology and productivity, and developing suppliers.
It also establishes incentives for the demand to acquire vehicles for sustainable mobility and for the operators of the automotive passenger transport service. The rule provides for possible increases to the tax on liquid fuels. The point of greatest resistance in the sector is that As of 2041, the sale of vehicles that operate exclusively powered by an internal combustion engine would be prohibited.