Government temporarily reduces export duties in boost for farmers

After repeated complaints from farming lobbies, Economy Minister Luis Caputo announced Thursday a temporary reduction of grain export duties, along with the elimination of export duties for regional economies. 

At a press conference with Presidential Spokesman Manuel Adorni, Caputo attributed the move to the prospects of drought and receding global commodity prices.

The reported reductions, which will only extend until midyear, are as follows: soy from 33 to 26 percent; soy-based products from 31 to 24.5 percent; wheat, barley, sorghum and maize all from 12 to 9.5 percent and sunflower from seven to 5.5 percent, although these percentages still await final confirmation as from next Monday.

According to INDEC statistics bureau, farm produce represented over 60 percent of Argentine exports last year. 

“We are going to lower taxation but without compromising the [fiscal] surplus. This decision permits farmers to plan better. Given the particular situation of the countryside with drought, this display of solidarity is very important. We’re trying to be fair, to lower taxes towards a fairer country,” commented the economic czar.

Caputo said that he would "love" to lower the grain levy to "zero" but for that Argentina would need "a (fiscal) surplus equivalent to US$8 billion."

"We cannot compromise everything, whatever good intentions we might have, by lowering taxes permanently,” said Caputo.

The four farming organisations forming the Mesa de Enlace industry group had been pressing Caputo for a meeting to discuss this issue, which he had vaguely promised for next month while admitting that the demands were justified, but on Thursday the government made its move ahead of any meeting.

The libertarian administration simultaneously announced the elimination of all export duties for regional economies – an area which covers the sectors linked to sugar, cotton, leather, rice, tobacco and forestry, among others.

Sociedad Rural Argentina President Nicolás Pino celebrated the lowered export duties but assured that he would continue "working to seek the total and definitive elimination of that tax."

– TIMES/PERFIL