The technological tax hit has become a law

In a second review, after an amendment from the Senate, the Lower House passed the bill submitted by the Executive Branch; prices of cell phones, digital cameras and monitors, among others, might increase up to 35%.

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After a second review, the bill known as Impuestazo Tecnológico (Technological Tax hit) was finally passed at the Lower House of Congress with 126 votes in favor, 7 against and 54 abstentions, according to the online newspaper lanacion.com.

Said rule taxes imported electronic devices such as cell phones, digital cameras, LCD screens, among others, by applying internal taxes and by doubling VAT. It also benefits manufacturers from the province of Tierra del Fuego with tax exemptions.

A big controversy

A few days ago, by means of a communiqué, Débora Giorgi, minister of Industry, stated that this law "is the first step towards equalizing Tierra del Fuego with other regions manufacturing electronic devices, such us the Mexican maquila, the Asian Southeast, and Manaos in Brazil, in terms of fiscal promotional treatment.

And she was harsher at adding that those who criticize the bill used "statements tinged with sectorial interests under a purportedly general interest mantle" (see the article "Giorgi respaldó el aumento fiscal a equipos electrónicos" - Giorgi supported the tax increase on electronic devices).

Previously, nearly all the business chambers representing the sectors affected by this change in taxes were opposed to the bill being passed and to the absence of dialogue in order to achieve a better proposal.

According to CICOMRA, the initiative will lead to a 34% increase in prices, and less income sectors will face more difficulties to gain access to technology.

In an editorial advertising published on October 28, they had stated "From CICOMRA we make a new call for legislators to reflect, so that Argentinians' rights to access to information and technology do not get affected in a negative way".

Translated by Pathway Traducciones