How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina
Under the pressure of a growing capital outflow, by the end of 2013 the Argentine government implemented what was known as the tax on "luxury cars". Even when not explicitly declared, the main objective was to reduce imports of most expensive cars to reduce the trade deficit of the automot...
| Main Authors: | , , |
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| Format: | Online |
| Language: | eng |
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Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
2018
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| Subjects: | |
| Online Access: | https://revistas.unc.edu.ar/index.php/REyE/article/view/29384 |
| _version_ | 1811172134877134848 |
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| author | Abba, Luis María Abba, Luis M. Moncarz, Pedro E. |
| author_facet | Abba, Luis María Abba, Luis M. Moncarz, Pedro E. |
| author_sort | Abba, Luis María |
| collection | Portal de Revistas |
| description | Under the pressure of a growing capital outflow, by the end of 2013 the Argentine government implemented what was known as the tax on "luxury cars". Even when not explicitly declared, the main objective was to reduce imports of most expensive cars to reduce the trade deficit of the automotive sector, which was contributing heavily to the capital account deficit. Even when the policy could be categorized as "successful" in terms of reducing a USD 4.5 billion deficit in 2013 to one of just over USD 0.7 billion in 2014, it had a devastating and lasting impact on the internal market, that just in 2013 had achieved a record in sales. We obtain that during the first year of the implementation of the tax, the overall impact on sales of models reached by the tax was 53.7%. Despite some differences, the negative impact took place throughout the whole year. Not surprisingly, cars reached by the highest tax rate were most affected, as well as carmakers that produce more expensive varieties. However, even when the measure may have been designed to have a direct impact on a small part of the market, the negative effects extended to the whole market. |
| format | Online |
| id | oai:ojs.revistas.unc.edu.ar:article-29384 |
| institution | Universidad Nacional de Cordoba |
| language | eng |
| publishDate | 2018 |
| publisher | Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. |
| record_format | ojs |
| spelling | oai:ojs.revistas.unc.edu.ar:article-293842022-05-03T23:40:11Z How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina ¿Cómo casi destruir un mercado sin querer y no fallar en el intento? El caso del impuesto sobre los automóviles de lujo en Argentina Abba, Luis María Abba, Luis M. Moncarz, Pedro E. internal tax automotive sector impact evaluation Argentina A10 D04 H20 impuesto interno sector automotor evaluación de impacto Argentina A10 D04 H20 Under the pressure of a growing capital outflow, by the end of 2013 the Argentine government implemented what was known as the tax on "luxury cars". Even when not explicitly declared, the main objective was to reduce imports of most expensive cars to reduce the trade deficit of the automotive sector, which was contributing heavily to the capital account deficit. Even when the policy could be categorized as "successful" in terms of reducing a USD 4.5 billion deficit in 2013 to one of just over USD 0.7 billion in 2014, it had a devastating and lasting impact on the internal market, that just in 2013 had achieved a record in sales. We obtain that during the first year of the implementation of the tax, the overall impact on sales of models reached by the tax was 53.7%. Despite some differences, the negative impact took place throughout the whole year. Not surprisingly, cars reached by the highest tax rate were most affected, as well as carmakers that produce more expensive varieties. However, even when the measure may have been designed to have a direct impact on a small part of the market, the negative effects extended to the whole market. Bajo la presión de una creciente salida de capitales, a fines del año 2013 el gobierno argentino implementó lo que se conoció como el impuesto a los "autos de lujo". Aunque no declarado explícitamente, el objetivo principal era reducir las importaciones de los automóviles más caros para reducir el déficit comercial del sector automotriz, que contribuía de manera importante al déficit de la cuenta de capital. Más allá del hecho de que la política podría calificarse de "exitosa" en cuanto a la reducción de un déficit de USD 4.500 millones en 2013 a uno de poco más de USD 700 millones en 2014, tuvo un impacto devastador y duradero en el mercado interno, que apenas un año antes, en 2013, había alcanzado un récord de ventas. Los resultados muestran que durante el primer año de la aplicación del impuesto, el impacto global en las ventas de los modelos alcanzados por el mismo fue del 53,7%. A pesar de algunas diferencias, el impacto negativo se produjo a lo largo todo el año 2014. No sorprende que los automóviles alcanzados por la tasa del 50% fueran los más afectados, así como los fabricantes de modelos más caros. Sin embargo, incluso cuando la medida puede haber sido diseñada para tener un impacto directo en una pequeña parte del mercado, los efectos negativos se extendieron a la totalidad del mismo. Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2018-12-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/REyE/article/view/29384 10.55444/2451.7321.2018.v56.n1.29384 Revista de Economía y Estadística; Vol. 56 No. 1 (2018); 7-20 Revista de Economía y Estadística; Vol. 56 Núm. 1 (2018); 7-20 2451-7321 0034-8066 10.55444/2451.7321.2018.v56.n1 eng https://revistas.unc.edu.ar/index.php/REyE/article/view/29384/30183 Derechos de autor 2018 Pedro Esteban Moncarz, Luis María Abba http://creativecommons.org/licenses/by-nc-nd/4.0 |
| spellingShingle | internal tax automotive sector impact evaluation Argentina A10 D04 H20 impuesto interno sector automotor evaluación de impacto Argentina A10 D04 H20 Abba, Luis María Abba, Luis M. Moncarz, Pedro E. How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title | How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title_alt | ¿Cómo casi destruir un mercado sin querer y no fallar en el intento? El caso del impuesto sobre los automóviles de lujo en Argentina |
| title_full | How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title_fullStr | How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title_full_unstemmed | How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title_short | How to almost knock down a market inadvertently and not fail in the attempt? The case of the tax on luxury cars in Argentina |
| title_sort | how to almost knock down a market inadvertently and not fail in the attempt the case of the tax on luxury cars in argentina |
| topic | internal tax automotive sector impact evaluation Argentina A10 D04 H20 impuesto interno sector automotor evaluación de impacto Argentina A10 D04 H20 |
| topic_facet | internal tax automotive sector impact evaluation Argentina A10 D04 H20 impuesto interno sector automotor evaluación de impacto Argentina A10 D04 H20 |
| url | https://revistas.unc.edu.ar/index.php/REyE/article/view/29384 |
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