Rise on Argentine agrifood export taxes decreed, effective immediately

Sunday, December 15th 2019 - 10:58 UTC

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Law Professor Fernández increased taxation by means of a decree

Argentine President Alberto Fernández signed a decree whereby export taxes on soy, wheat, corn and beef go up. The decree became available Saturday as it appeared in the Official Gazette and is effective immediately.

The rate for soybeans, soyoil and soymeal went up to 30% from about 25% and the government also lifted the levy on corn and wheat to 12% from around 7% while the rate imposed on beef rose to 9% from 7%.

“Given the serious situation that public finances are going through, urgent adoption is necessary to meet, at least in part, budget expenditures with new resources,” the decree said.

The move aims at increasing revenue to avoid default on looming sovereign debt.

Argentina's farmers, already hit by high financing costs, inflation and a dry spell, had widely expected their profits to take a hit from some sort of tax hike, with the government facing restructuring talks on about $100 billion in debt, but said they were disappointed the decision was enacted by means of a decree instead of through a negotiating table.

In a separate resolution also published Saturday in the Official Gazette, the Agriculture Minister suppressed effective Monday the registry of grain exporters known as DJVE, further burdening the agrifood business with new uncertainties amidst the crisis the sector is going through.

Argentina is the world's No. 3 corn and soybean exporter and top supplier of soymeal livestock feed.

Since many law scholars agree a tax on service exports by measures of an executive decree could be considered to be unconstitutional, a barrage of lawsuits is likely to ensue in order to have the hikes halted until at least a law in that regard has been passed by Congress.

Ironically, President Fernández is a law professor who has already announced he shall not be taking a leave from his teaching duties while at the helm of the Casa Rosada.

Categories: Agriculture, Economy, Politics, Argentina.

Tags: Alberto Fernandez, Argentina, Argentina beef export, Argentina new grain export taxes, Argentina soybean, Argentine corn, argentine farmers, Argentine wheat exports.

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imoyaro
Wonderful news! The attack on farmers large and small begins again, just like under the last Narcokleptocracy!
Dec 15th, 2019 - 01:02 pm +1
Chicureo
It worked wonderfully last time, so why not commit the same stupid idea again...
Dec 16th, 2019 - 02:33 am +1
pgerman
In just one week, they have reinstated part of the economic scheme in force until year 2015. Exchange altered rate, “tourist dollar”, restrictions on capital movements, restrictions on access to foreign currency, increased taxes on production and exports, lower rates of interest (rates lower than inflation), tariff barriers, etc. All that remains for them is to disseminate fraudulent official inflation figures and to declare (in a patriotically and festive environment) unilaterally the “default”. Hyperinflation “in sight” and economic failure assured.

I wrongly imagined that Alberto Fernandez was going to be smarter and would take advantage of all “capital” (low fiscal deficit, high dollar, many exports, excellent international relations with the developed world) inherit from the previous government. I was wrong. In a few days he has begun to destroy everything ....
Dec 16th, 2019 - 01:33 pm 0

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