Argentina officially announced on the 19th that it will levy an extra 30% tax on international flights. H/T: Bloomberg
the government will once again tax purchases made in foreign currency including international flights, digital services like Netflix and purchases made abroad with credit cards. The tax, which may reach as high as 30%, is meant to help boost revenue and protect dwindling foreign reserves.
This move has triggered a rush of travelers buying international tickets, with flights to the United States—and especially to Miami—being the first and biggest winners of the backlash. In addition, residents’ overseas spending in their home country is also being hit with an extra 30% tax to limit dollar outflows. Argentines making purchases in foreign currency abroad by credit card, or spending in dollars on websites, will face an additional 30% tax, including on ticket purchases and hotel bookings.
All of these measures are part of a new bill intended to help reduce Argentina’s fiscal deficit.