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Argentina Ends Mobile Phone Import Tariffs

The government says the change will spur competition and lower prices, but analysts expect any relief to roll out gradually given taxes, logistics and existing inventories.

Overview

  • Effective January 15, the import duty on cellphones falls to 0% under Decree 333/25, completing a schedule that cut the rate from 16% to 8% last May.
  • Officials project price drops of up to 30%, while market estimates range closer to 10–25% and suggest the impact will appear over the coming weeks as new stock arrives.
  • Pass-through is tempered by a 21% VAT, residual internal taxes (such as a 9.5% levy on some imports), logistics and financing costs, retailer strategies and a sizable contraband market.
  • The tariff removal is part of a broader package that also scrapped internal taxes on Tierra del Fuego–made phones, TVs and air conditioners and reduced levies on imported TVs and game consoles.
  • Producers and the UOM in Río Grande warn the policy threatens competitiveness and about 8,500 electronics jobs in Tierra del Fuego, a province heavily dependent on the sector.