Agricultural producers insisted that the sector was losing competitiveness due to the value of the peso, so the withholdings exposed them to producing “at a loss.”
After a series of demands of different agricultural associations, who asked to meet with him Minister Luis Caputo for eliminate withholdingsthe Government announced that it will give rise to the claim and apply a tax reform on rural production that will begin next Monday, January 27 “until the end of June”as detailed by the authorities.
Through a conference led by Manuel Adorni and Caputo himself explained that They will reduce the rates for the main crops and their first productions and they are going to “permanently” eliminate withholdings from regional economies. “Lowering withholdings is restoring the presidential word,” remarked the presidential spokesperson, who indicated that the announcement is due to “the consolidation of the financial surplus which was possible thanks to the efforts of the Argentines and the rigorous economic plan.
In turn, the Minister of Economy, who did not accompany the President Milei to the Davos Forum Given the week of definitions that local financial policy was going through, he stated that “this is a government that has come to lower taxes” and pointed out that they have worked together with the agricultural producers to establish a tax scheme, “understanding the particular situation of the field, both the drought like the lowering of commodity price. I would love to lower them to zero permanentlybut that would imply having a surplus equivalent to US$8 billion, which we do not have today.”
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Caputo also considered that “it would be good if The demands also begin to concentrate at the level of provinces and municipalitiesbecause there is a very clear difference in the effort we are making at the national level. “There are provinces and municipalities that are charging more and more distortive taxes; the most distorting is gross income,” he stated and requested: “Expose all the provinces and municipalities that are not aligned with the Government’s economic policy”.
How would the aliquots be?
During the conference, the Government detailed the new scheme for crops:
- Soybeans: 33% to 26%
- Soy derivatives: 31% to 24.5%
- Wheat: 12% to 9.5%
- Barley: 12% to 9.5%
- Sorghum: 12% to 9.5%
- Corn: 12% to 9.5%
- Sunflower: 7% to 5.5%
Besides, Withholdings will be eliminated from regional economiessuch as the sugar and tobacco.
Source: Ambito
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