The senate has confirmed the increase in the tax on luxury items such as expensive cars, properties and other high-value items. Some goods will now be taxed at a rate of 50%.
The president of the Budget and Property Commission, Anibal Fernandez, commented on the change. He said its purpose is not ”collection of funds, rather it seeks equity and distribution of income”.
There was already a tax rate of 10% on luxury goods, but the change, which modifies internal tax law 24.674, will see the rate rise by different amounts depending on the value of the item.
Products valued at above $170,000 – or $210,000 for high-value cars and other vehicles – will be affected by the change. Goods between this price range will be taxed at 30% and those valued above $210,000 will be taxed at 50%.
Aircrafts used for sport or recreation will be taxed at 50% if they are valued at above $170,000. Motorbikes will be taxed at 50% if they cost between $22,000 and $40,000.
The change was voted in with 39 votes in favour of it, 18 votes against it and five abstentions. The votes in favour were from the ruling party the Frente para la Victoria and their allies and the votes against were from the opposition.