Government moves to curb internet purchases


Argentina’s government has announced a new regulation to stop the flight of money out of the country through internet purchases.

The government announced on Tuesday that in future Argentines buying online would have to collect their purchases from the Post Office and submit a statement to the tax agency before they receive their goods. Any purchases could incur a further tax of 50% of the value of the product.

The regulation relates to the purchase of goods on foreign websites and all the details of the transaction must be completed on a form on the Administración Federal de Ingresos Públicos (AFIP) website.

Argentina ended 2013 in serious economic trouble. Its inflation is estimated to be running at about 28%, the peso has weakened dramatically in the past twelve months, foreign-currency reserves of the Central Bank (BCRA) at their lowest since 2006 and long term government bond yields are running at around 10.5%.

A recent poll by Management and Fit revealed that 75% of those interviewed think the economy is “on the wrong track” and 54.9% described themselves as pessimistic about the country’s economic future.

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