Argentina Extends Wheat Export Tax Reduction

Economy Minister Luis Caputo said on Tuesday (May 20) that Argentina will extend a reduction in export taxes on wheat while ruling out further tax relief for other major grain exports.

Farmers and exporting companies had been calling for the measure, which was set to expire at the end of June.

Caputo announced in a post on X that the tax reduction on wheat and barley will remain in effect until March 2026.

With the decision, wheat and barley will continue to be taxed at 9.5%, while corn, which is also currently taxed at 9.5%, will return to a 12% rate at the end of next month.

However, Caputo said tax relief for other major export crops, such as soybeans, corn, sunflower, and sorghum, as well as their byproducts, will not be extended.

The export tax on soybeans, soybean oil, and soybean meal will increase again at the end of June.

From the current rates of 26% and 24.5%, they will rise to 33% and 31%, respectively.

Argentina is the world’s largest soybean oil and meal exporter, and the third-largest exporter of soybeans.

Shipments of these products are the primary source of foreign exchange for South American countries.

Caputo added that the measure will remain in place through the next wheat harvest, as planting begins.

Source: CNN Brasil

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