President renews calls for passage of tax bill

Argentine President Cristina Fernández de Kirchner has called on congress to pass a bill that would increase taxes on certain electronic goods, online news source CanalAR reported. The government's bill aims to increase taxation of items deemed as imported or domestic luxury goods, including laptops, mobile phones, monitors and digital cameras. As such, consumers purchasing these products would pay 20-25% in taxes, compared to the current 17% tax, as well as 21% in value added taxes, compared to the current VAT of 10.5%. While speaking at an event in the province of Missiones, Kirchner said the bill will deter imports and help strengthen domestic production. "Argentina imported US$6bn in electronic goods last year. Imagine what would happen if we could do that [produce the goods] here, and all the jobs it would create," she said. Argentina "needs to start the process of import substitution," she added. In spite of those remarks, the bill has caused concern among ICT industry officials and local experts. The president of Argentine consultancy Prince & Cooke, Alejandro Prince, recently told BNamericas that the initiative runs contrary to efforts to reduce the digital divide in the country. Additionally, a study published earlier this month by the local Universidad de San Andrés found that the proposed tax increases would reduce mobile penetration by roughly 3.75-7.5%. The bill is currently being discussed in congress.