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Argentina Introduces Reciprocity Tax At Airport

by Mike Godfrey, Tax-News.com, Washington

31 December 2009

Argentina's Interior Minister, Florencio Randazzo, has announced the introduction of a new airport tax, called a 'reciprocity tax,' because it is set differently for different nationalities, based on what the traveler's home country charges for visa applications.

People can travel to Argentina without visas, unlike Brazil and Chile, but the minister explained that the revenue is needed to modernize border crossings and immigration controls in Argentina. Argentina intends to advance computerization of all borders, upgrade equipment, and install biometric identification devices.

Under Decree 1654/2008, tax will be paid in US Dollars or Argentine Pesos and applied at first only at Ezeiza Airport, where slot machines have been installed. Examples of typical charges include USD100 for Australians, USD70 for Canadians, and USD131 for US citizens.

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