The Argentine government announced a temporary reduction in export taxes on the agricultural sector, with the new rates coming into effect next Monday. During a press conference at the Casa Rosada, presidential spokesman Manuel Adorni and Economy Minister Luis Caputo detailed these changes, highlighting that regional economies, such as sugar and wine, will be exempt from taxes.
"The decision to reduce taxes is the result of the financial surplus achieved through a rigorous economic plan and the effort of all Argentines," stated Adorni. Minister Caputo indicated that these modifications will last until June, coinciding with the start of the soybean harvest, aiming to facilitate the liquidation of foreign currency in the second quarter of the year.
Despite previous reductions under the presidency of Mauricio Macri, tax rates were increased again after the economic crisis of 2018. There is uncertainty about the future of the blended dollar with the latest tax reduction, as this exchange rate currently stands at 1,074 pesos.
Minister Caputo expressed that the new agreement is expected to result in a contribution of 11 billion dollars, which is crucial for the country's economic stability. Demands for the reduction of taxes have been supported by agricultural sector groups and governors of agricultural provinces, concerned about falling commodity prices and drought that could affect harvests.
Taxes have historically been a controversial issue in Argentina, with rates varying since their introduction in the 90s. Their elimination is a requirement from the IMF to prevent some of the foreign currency from evading the Central Bank. Caputo called on provinces and municipalities to support the national tax reduction.
In an effort to improve the economic situation, the Argentine government announced the temporary reduction of taxes on agricultural exports, in response to producers' demands and with the aim of strengthening the country's reserves. The reductions will reach up to 7 percentage points, with products such as soybeans, wheat, and corn seeing significant cuts in their taxes.
