The Government of Milei eliminated the luxury tax and the prices of cars fell

The elimination of the so-called “luxury tax” promoted by the Government of Javier Milei has already begun to show concrete effects on the automotive market. Starting in April, several premium brands adjusted their lists and transferred to prices the removal of a tax that for years artificially increased the value of

0 km in Argentina.

One of the most visible cases is that of Volvo, which applied discounts of between 7% and 21% on its models after the entry into force of the new tax scheme. The strongest loss occurred in the XC90, whose reduction reached up to $35,000 in one of its versions. This is a clear sign of the impact that tax cuts can have when a distortive burden that punished the consumer is effectively deactivated

.

With the new values, the EX30 Core went on to cost $43,500, while the Plus version was $52,900 and the Ultra at $62,900. There were also casualties in other models of the Swedish brand: the XC40 went to $75,000, the C40 to $80,000 and the XC60 Core to $87,900. In the higher segments, the XC60 Plus fell to $99,000, while the XC90 Core came in at $122,900 and the XC90 Plus at $139,900.

But Volvo wasn't the only one. BMW and MINI also updated their lists with relevant reductions. According to the published survey, the highest nominal drop within BMW reached $30,000 in models such as the M5, the X6 M Competition and the X7 M50i. In percentage terms, one of the most significant reductions was that of the BMW X4 xDrive30i, with a decrease of 19%. On average, the models achieved by the domestic tax showed cuts of 10%

.

Porsche had also anticipated very strong discounts, with drops of up to $128,000 in some models, while Mercedes-Benz estimated average reductions of 13% in the vehicles achieved. Audi, on the other hand, posted casualties of between 11.5% and 17.1%, with an average

of 12.3%.

For more than a decade, this tax artificially increased the value of vehicles, affecting even models that could not even be considered truly luxury. Milei's decision to move forward on that distortion has already begun to translate into concrete relief for

the market.

While trade unionism and judicial sectors linked to the old scheme are trying to stop parts of the reform, the tax cut that did remain in effect is already generating

tangible effects.