Government Reduces Export Duties for Argentina’s Grain Sector

Argentina’s Minister of Economy, Luis Caputo, announced on Tuesday, the 9th, a new permanent reduction in export taxes for the grain and byproducts chain.

The measure, communicated through the social network X (formerly Twitter), aims to ease the tax burden on the agricultural sector, which the government considers one of the main drivers of the local economy.

Under the decision, the tax rate on soybeans will fall from 26% to 24%, while the tax rate on soybean byproducts will be reduced from 24.5% to 22.5%. For wheat and barley, the rate will drop from 9.5% to 7.5%. Corn and sorghum will be adjusted from 9.5% to 8.5%, and sunflower from 5.5% to 4.5%.

Caputo stated that eliminating taxes is a priority for President Javier Milei and that the government will continue moving in that direction as macroeconomic conditions allow. “This step seeks to improve the competitiveness of the agro-industry, which accounts for about 60% of our exports,” the minister said.

The announcement comes amid a decline in foreign-currency revenue for the sector. According to data from the Argentine Oilseed Industry Chamber (Ciara) and the Cereal Exporters Center (Cec), revenue from exports of grains and derivatives totaled US$759.7 million in November, down 62% compared with the same month in 2024 and 32% from October.

The measure also aims to ease tensions with the productive sector. In January 2025, the government applied a temporary reduction in soybean tax rates from 33% to 26%, valid until June 30. When the deadline expired, the rates automatically returned to the 33% level, generating dissatisfaction and uncertainty among exporters regarding the direction of fiscal policy.

Source: UOL

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