Overview
- The change completes Decree 333/25’s phased cut from 16% to 8% in May 2025 and now to 0% on January 15, 2026, framed by the Milei government as tax relief and market opening.
- Economy Minister Luis Caputo and Chief of Staff Manuel Adorni touted more competition and lower prices, with Caputo saying some models already fell 25–35% since last year’s initial reduction.
- Market players forecast a smaller, uneven pass‑through at first—estimates range from roughly 6–10% to 20–25%—and some distributors note earlier tariff cuts are already reflected in pricing.
- Unions and manufacturers in Tierra del Fuego caution the measure threatens local assembly and employment, pointing to an electronics sector that accounts for about 78% of the provincial economy and roughly 8,500 jobs.
- Industry groups cite constraints on price declines including 21% VAT, other internal taxes, financing and logistics frictions, and a sizable illegal market, with AFARTE estimating about one in three phones is illicit and legal imports near 5% of 2025 sales.