MercoPress. South Atlantic News Agency
Argentina applies tax hike on bio-diesel exports and lowers price for local market
Argentina tightened its grip on the country's energy sector on Friday by ordering a tax hike on bio-diesel exports, a move it said was needed to make domestic fuel prices more affordable, but denied market rumours that it will increase a soybean export tax. Read full article
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Disclaimer & comment rulesJolly good. This should ensure that other countries reduce their demand for argie bio-diesel. Logically, an export tax is paid by the exporter not the foreign importer. Of course, the exporter can try to pass some of the tax increase on to the importer. What fun when the foreign importer says “No thanks”!
Aug 11th, 2012 - 11:40 am - Link - Report abuse 0Ah, CFKs economic model in action.
Aug 11th, 2012 - 11:48 am - Link - Report abuse 0Subsidise domestic prices, hike export prices.
So the international markets will look for other cheaper options, meaning that Argentina's profits will plummet, and CFK will have destroyed yet another Argentine industry for the sake of a short term 'populist' measure.
Countries like Canada, Costa Rica, Australia, Uruguay and India could benefit hugely from this. All they have to do is undercut the Argentine prices by a few cents and they will push Argentina out of the market.
The reality is NOBODY wants products manufactured in Argentina. The quality of Argentine produced products is laughable. The appliances both small and large last about 3 months until they break down. Cheap, shoddy materials, and the designs look like things that I found in my grandmothers basement in 1960. So if you like cheap, retro imitations that don't funcion and need to be constantly fixed, then go for the Argie junk. The factory workers work about 5 hours per day, for inflated salaries, and if their boss asks them to do anything they complain to the union shop steward, who files a lawsuit or calls a strike against the factory owner. This is how Argentina works! It's the biggest failed experiment ever, called the “República Argentina” that is ruled by the criminal Cristina Fernandez de Kirchner (a/k/a scrotum neck) that has stolen BILLIONS of dollars from the Argentine people, tries everything in her power to squash her detractors, silence the press, opress the citizens, steal their money with extorsive and invented taxes, it's well known that she never even finished her law degree but says she is a a lawyer, her children the horribly ugly Florencia and pudgy fat Maximo have high ranking government positions but have never set foot in a university, a vice-president Amado Boudou who is a small time criminal mafioso who owns companies that he awards government contracts to for millions - Argentina is a bastion of modern day CORRUPTION - all countries should avoid doing business with Argentina like it was a PLAGUE - this Kirchner disaster cancer must be taken down and thrown to rot in jail forever along with her cronies - down with this PERONIST garbage who talk about “social justice” and are only interested in their own power and wealth and do NOTHING for the citizens of the country but steal their hard earned money and possessions and talk about how awesome they are. Cristina Kirchner even once said that “god wanted her to be president and rule Argentina”!
Aug 11th, 2012 - 02:03 pm - Link - Report abuse 0Taxes are good it keeps the economy in the wealthiest country healthy, we hope taxes on exported mineral coming out of Argentina start climbing as well to a level similar to USA, Canada or Australia.
Aug 11th, 2012 - 02:23 pm - Link - Report abuse 0@4 - PH
Aug 11th, 2012 - 02:35 pm - Link - Report abuse 0Tax hikes aren't good on your exports, especially when there are at least 20 other countries in the world that produce bio-fuels.
So PH if the international consumer looks to a country (for instance Canada, they are top producers of biofuels) that will sell them bio-fuels cheaper than Argentina what money will Argentina make?
No customers means no revenue from the taxes, means no money for the Argentine economy.
You don't need a degree in economics to be able to work that out. And at the same time CFK won't allow the bio-fuel companies to make a profit domestically, so basically she will have ruined another Argentine company, or companies.
And once you've priced yourself out of the market, it will be so much harder to break back into it, especially as many countries don't see Argentina as stable, politically, economically or financially.
I'm sure the people will cheer her in the short term, but in the long term she is destroying Argentina's economy for years if not decades to come.
@5 well said matey PH hasn't a clue what she's doing to bring down his country, blinkers are well and truly on.
Aug 11th, 2012 - 05:16 pm - Link - Report abuse 0@4 Excellent! Can you name the “wealthiest” country? With supporting FACTS? Can we come round and experiment on your body?
Aug 11th, 2012 - 05:39 pm - Link - Report abuse 0#5 don't tell me that, why not explain it to the wealthy nations charging anywhere above 20% taxes on raw material and minerals. I am simple asking Argentina to tax the world the same way as wealthy nations do. Even 20% taxes are too low in comparison to USA, UK, Canada or Australia export tax for minerals. I am not really interested in feeding the world but rather keep all the food and minerals in Argentina to provide for Argentina rather then the white man. Simple.
Aug 11th, 2012 - 08:02 pm - Link - Report abuse 0Another good move by Kicillof and Cristina. As the old saying goes, theres no civilisation without taxation
Aug 11th, 2012 - 09:16 pm - Link - Report abuse 0@8 - PH
Aug 11th, 2012 - 09:50 pm - Link - Report abuse 0So you want the majority of Argentines to starve do you? I mean you don't want to feed the white man (I trust that feeding white women is acceptable to you), but the largest ethnic group in Argentina is the 'white man'. Besides why should you care about Argentine people or taxes etc...? I mean, you ran away from Argentina for a better life, but you want the people who live there to suffer. What an evil souled person you are. Racist and wanting people to starve, while you live in relative luxury.
@9 - BK. you know nothing about economics.
Let's get to the point. Let's say Argentina sells a barrell of bio-fuel for US$50, and then the Argentine government add on another US$10 in export tax.
Canada, on the other hand, sells a barrell of bio-fuel for US$50, but only adds on US$2 in export tax.
Now as the consumer what would you pay? US$60 or US$52 per barrell?
It's simple economics. Now if Argentina was the only country in the world that produced bio-fuels you could get away with increasing the tax, but you're not.
At least 20 other countries around the world also produce bio-fuels.
China
USA
UK
Canada
Australia
Puerto Rico
India
Pakistan
Brazil
France
Finland
Uruguay
Thailand
Czech Republic
Belgium
Israel
Lithuania
Indonesia
Estonia
Germany
Spain
Singapore
Taiwan
Norway
Papua New Guinea
Malaysia
Cambodia
Now all of these countries would love the opportunity to expand their export market and all they would have to do is undercut Argentina's price by a few dollars or even cents.
No country is going to spend more than it needs to, to buy fuel, so Argentina may find its international customers fading away.
And if no one is buying your fuel, there will be no taxes to collect and there is a danger of your bio-fuel industry collapsing, especially as CFK is making them cap the prices of fuel for domestic consumption. No tax means no money in the coffers, which means that the Argentine people will suffer.
Yes CFKs economic model in action. Disastrous.
8 PH
Aug 12th, 2012 - 09:30 am - Link - Report abuse 0Sounds racist, and you enjoy the benefits of our Canadian (white and British) society while you rant against us with your hate on the Internet.
You two-faced coward! I bet you don't say these things out loud to your hosts.
As a guest, you've abused Canada's hospitality and generosity.
If you have become a citizen, what does that say about your faith in your country and your culture???
You've escaped that corrupt dictatorship to get the lifestyle you want, but you deny fellow Argentinians freedom from poverty and political oppression, while you also deny self-determination of the Islanders you are childishly jealous of.
You are so full of hate and disdain that you refer to your own poor as peasants and worthless.
You sound like an unstable psychopath and a Security Threat, to me.
“pgerman” would do well to distance himself from you, before CSIS comes knocking...
And what about the loss of dollar income that The Mad Bitch Of Argentina so desperately needs to fill her own coffers?
Aug 12th, 2012 - 01:23 pm - Link - Report abuse 0Kickitoff is a complete idiot when you look at his public comments and especially his track record at Aerolineas Argentina and KPF.
TMBOA and he deserve each other if they think this stunt is NOT going to kill the biodiesel / bio-fuel market stone dead.
@8 PH
Aug 12th, 2012 - 05:34 pm - Link - Report abuse 0“ I am not really interested in feeding the world but rather keep all the food and minerals in Argentina to provide for Argentina rather then the white man. Simple.”
#10 USA, Canada, UK and Australia are doing better with the highest taxes in the planet I want Argentina to do well as well and anything bellow 20% taxes on exports is a recipe for disaster. Now if you wish to trade bio-fuel below cost price its your money to throw, we are in the business to collect profits not in the old business of paying for loans to say we run a bio-fuel industry, go to UK with your advise.
Aug 12th, 2012 - 06:53 pm - Link - Report abuse 0#11 I enjoy America because it is my land too bad it is littered with white trash Europeans pest who should be sent back to europe. Besides it is the white trash from europe who has abused our welcome. Good try and play again, I am not full of hate I don't arm mexicans to kill each other for my cocain as USA does.
#12 take your advise to USA, Canada, Australia or UK lol they all charge beyond 20% export tax. As little as 14% in Canada and that is regular taxes before export tax.
#13 our minerals and fuels are for Argentina to enjoy if anyone else wants it they should pay as much taxes as we wish, if you can't afford it we wish you good luck
Finding it else where, there is nothing for us to discuse here apparently Argentina biofuel is too expensive for you or white trash are cheap.
Looks like the SS Argentina opened yet another seacock......such a slow death.
Aug 12th, 2012 - 08:30 pm - Link - Report abuse 0PH
Aug 12th, 2012 - 11:15 pm - Link - Report abuse 0Your posts show your racism and hatred. Is everyone else to blame for your own stupidity and real or imagined misfortunes???
You sound like you must go through everyday, angry, resentful, and frustrated.
Do you need to go back 200 or 300 years to find someone to blame.
Funny that you seem to have been given the same opportunities as everyone else in a Commonwealth society , and yet you froth with anger and want to deny everyone else any happiness. Poor pathetic sad soul you are!
Odd that you cannot speak English, the first language of North America (dominant language of global relations, I might add), makes me suspect that you are of South American aboriginal ancestry. If that's the case, the Euros you should be racist towards, would be the Spaniards and Argentinians who wiped out those people and disenfranchised them. Right?
However, I suppose that the Argentinian ranting and raving Peronist bandwagon is a good on to jump on - they take no responsibility for themselves either, and they too blame other ethnicities.
Perhaps you're angry at yourself for being in bed with the Peronists and genocidal Argentinians???
I know you will rationalise your hatred somehow LOL
Looking forward to your answer. You won't tell me the truth, but let's hear you lie to yourself.!!!!
me no understandi
Aug 13th, 2012 - 12:59 am - Link - Report abuse 0Pirat-Hunter doesn't live in Canada!!!! It lives in Argentina and is employed by La Campora to post on MercoPress.
Aug 13th, 2012 - 03:20 pm - Link - Report abuse 0What it doesn't seem to understand is that its salary of ARS$50 per diem is eroding to the tune of 30% per anum.
Poor old P-H, soon going to be out of a job!!!!!!
Hitler Youth!!!
Aug 13th, 2012 - 06:19 pm - Link - Report abuse 0I wish I'd known about La Campora earlier.
Googled them and Wiki even mentions their actions on the Internet and social media, to “harass critics of the Peronist Kirshiner government”.
Run by CFK's son, Maximo.
That explains everything - these guys know nothing.
I wonder if “pgerman” in Vancouver has bought into this intimidation and disinformation?? :-)
19 Troy Tempest (#)
Aug 14th, 2012 - 03:54 pm - Link - Report abuse 0Now La Campora is doing illegal party politics in primary and secondary schools, so on top of the malvinista brainwashing our kids get, they are now faced with political brainwashing as well!!!!!
@20 Simon
Aug 15th, 2012 - 02:29 am - Link - Report abuse 0I am so sorry to hear that. It's shockingly evil.
What's next , Thought Police??
Will children be turning in their parents and neighbours to the Campora Kommisar of the apartments???!!
I really hate to breeak the news to the RG's, the USA annouced today we are phasing (8/16/12) out bio-fuels made with soy and sugar cane. Can RG say SORGHUM.....time to start replanting.
Aug 16th, 2012 - 08:57 pm - Link - Report abuse 0Commenting for this story is now closed.
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