President Mauricio Macri announced today that he would eliminate export taxes for all agricultural goods except soy, for which the tariff will be cut from 35% to 30%.
Speaking at a corn field in the rural town of Pergamino, Macri declared: “As soon as I arrive back in Buenos Aires I’m going to sign a decree for zero export taxes, meaning Argentina will have no more taxes for exports of wheat, corn, sunflower, and regional products.”
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President Macri announces elimination of agricultural export taxes. (Photo via Mauricio Macri official Facebook page)
Agricultural minister Ricardo Buryaile confirmed that taxes would also be removed for meat and fish.
“I have confidence in you,” said Macri. “We need to export fewer cereal crops and export more goods with added value. We need to stop being a granary for the world and become a supermarket for the world. Because that means big plants being built across Argentina, and these generate quality jobs.”
Representatives of agricultural producers called the measure “historic”. Luis Miguel Etchevehere of the Sociedad Rural said it was an important move that “will allow immense regions of Argentina begin to create added value.” Etchevehere added that: “measure like this generate confidence that incentivise investment.”
The elimination of export taxes has been a recurring demand of the agricultural sector in recent years. The Macri administration hopes that the measure will encourage producers that have been holding grains – especially soybeans – in storage to now sell them and bring in badly-need dollars.
The government said that revenues lost from cutting export taxes would be recuperated through other taxes, such as those on profits, which it said should increase as farm production grows.
In that vein, President Macri warned rural producers that they must not attempt to evade other taxes, saying he would act “relentlessly” against those who don’t comply. “Now we are going to administer [taxes] well, there is no excuse. If there are higher profits that you have to happily pay higher taxes on them. These taxes help us create opportunities for others.”
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