The national government resolved today that consumption in foreign currency with a credit and debit card on tickets and tourist packages that exceed US$300 per month will pay an extra 25% advance payment of the Personal Property Tax, which will resulting in an exchange rate of $300 based on current values, official sources said.

The measure also covers what is considered sumptuary or “luxury” goods purchased abroad, such as high-end cars and motorcycles, private jets – small planes; recreational boats – boats; premium alcoholic beverages; watches, pearls, diamonds and other precious stones, slot machines and cryptocurrency mining machines, the informants added.

Considering a dollar exchange rate of the Banco Nación of $150, if the PAIS Tax (30%), the collection on account of Profits (45%) and the collection of 25% on account of Personal Assets are added, the value of the trade per dollar will be $300.

Consumption for less than US$300 per month will continue to pay the current exchange rate of $262, corresponding to the official exchange rate plus the PAIS Tax and the 45% Income Tax withholding.

The objective of the measure -which will come into force tomorrow after its publication in the Official Gazette- is to avoid the establishment of quotas and favor access to the market for the importation of intermediate goods or those necessary for local production, while at the same time making access for non-essential activities and for a small segment of the population.

In this sense, some 3 million people made consumption with a card in dollars last August, of which 2.8 million made expenses for less than US$300 in the month, at an average of US$22 dollars each -equivalent to 19% of the total monthly card expenses.

While 200,000 people spent more than US$300 -for an average amount of US$1,314, equivalent to 81% of total card expenses-.