MercoPress. South Atlantic News Agency
Argentina reinstates refunds for agriculture exports
Wheat flour, beef, sunflower oil, rice, honey are some of the produce which are benefitted with the renewed system Argentina has decided to reinstate refunds for agriculture exports, responding to a promise to the provinces from president Mauricio Macri but also to prop foreign trade and boost the most dynamic sector of an anemic economy. The fiscal cost is estimated in 165 million dollars and is extensive to wheat flour, beef, sunflower oil, powder milk, cheese, honey and other produce from the provinces.
On average refunds will go up from 0.5% to 4%, and should help lower the tax burden for the agro-export business, according to government officials.
Wheat flour refund increases to 3% (wholesale) and 4% (in one kilo packages). This follows on the elimination of export taxes on wheat inherited from the previous government. Although industry has requested an 11% refund, “it's a great advance” admitted Diego Cifarelli, president of the Argentine milling industry association.
Beef exports which had no refunds will have a range between 2.5% and 4%. Mario Ravettino also praised the decision although admitting that it's a difficult moment since farmers are recovering herds and thus price of cattle is the highest in Mercosur country members.
Pork also was benefitted with a range of 2.7 to 4%, and broilers, will average 4.5%. Dairy produce exports will also receive an average refund of 4%. Sunflower oil, 3%, corn flour will receive an additional 0.5%, and rice between 2% and 3%. For some regional economies there will also be refunds for honey, olive oil, tea and mate, depending on the degree of industrialization.
“This was necessary to correct or mitigate an unfair situation compared to manufactured goods such as textiles and auto parts, which have a long standing promotion system while farm produce was punished” said economist Juan Garzon from the Mediterranean Foundation in Cordoba.
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Read all comments“This was necessary to correct or mitigate an unfair situation compared to manufactured goods such as textiles and auto parts, which have a long standing promotion system while farm produce was punished”
Jan 03rd, 2017 - 08:56 pm +4reekie will be so upset to hear about this
ML,
Jan 03rd, 2017 - 10:40 pm +3Yes, he doesn't like the beef export profits - did his best to minimise that success.
You would think he doesn't really WANT an economic recovery.
There's a substantial part of Peronism that believes in extreme forms of economic nationalism, and some even say that Argentina should have no trade at all with other nations, and that it should make or grow everything it needs, that the national government should direct the economy and that growers should be subservient to such central planning. I think reekie's support for those things suggests that he was seduced early on by such childish notions, but there is no shortage of similar believers here. There is also no shortage of examples of how Argentina has failed miserably in such attempts.
Jan 04th, 2017 - 04:52 pm +3Commenting for this story is now closed.
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