Argentina raises tax on agricultural exports

On Saturday, December 14, Argentina raised tax on agricultural exports to boost government revenues before efforts to restructure its US$100bn debt in bonds and loans.

According to Reuters, the agricultural sector was expecting an increase in tax on exports of products such as soybeans, corn, and wheat. “Given the serious situation facing public finances, urgent fiscal measures are needed to address at least partially the budget disbursements with genuine resources,” said the decree establishing the tax changes.

The decree also established that the tax of 4 pesos per dollar exported from wheat and corn is no longer in effect and left the maximum 12% tax rate for grain and oilseed that had been set by former President Mauricio Macri in September 2018.

With this change, this 12% adds to the fixed rate of 18% that soy and its derivatives already pay, and amounts this tax to 30%. Meat, dairy products, fish, wheat flour, rice, and other foods now pay a 9% tax rate.

Sources: Reuters and Valor

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