The decrease is temporary and for the main exported products of the sector, but includes a key condition for access. The information had been advanced by the Minister of Economy, Luis Caputo last week.
The government of Javier Milei published this Monday in the Official Gazette the decree that establishes the temporary reduction of withholdings on agricultural exports with the objective of liquidating grains and adding reserves through an incentive of lower rates for the main exported products. by the sector.
The regulations were published in the Official Gazette. According to the provisions, the new rates began to take effect from this Monday and will remain in force until June 30. Among the changes, The reduction in withholdings for soybeans (grain) stands out, which fell from 33% to 26%, and its derivatives, which went from 31% to 24.5%. Cuts are also applied for wheat, barley, corn and sorghum, whose duties decrease from 12% to 9.5%, as well as for sunflower, which is reduced from 7% to 5.5%.
The fine print of the reduction in withholdings: the condition that the Government placed on agriculture
The decree also establishes that exporters must liquidate at least 95% of the foreign exchange generated by these merchandise within a maximum period of fifteen business days from the corresponding Affidavit of Foreign Sale (DJVE), in accordance with the provisions of Law No. 21,453 and its modifications.
Furthermore, it adds that, if the period stipulated in the initial article expires or the aforementioned conditions are not met, the corresponding export duty rate will be applied again. to the tariff position in force before the entry into force of this measure. Supervision of compliance with these deadlines will be the responsibility of the Customs Collection and Control Agency (ARCA) and the Central Bank.
On Thursday afternoon, the Minister of Economy, Luis Caputo, together with the presidential spokesperson, Manuel Adorni, justified the decision by arguing that the fiscal surplus allowed the immediate implementation of the reduction in withholdings.
With this measure, the Government seeks to respond to the sustained claims of the agricultural sector, that had been demanding fiscal relief through its leaders and the governors of three of the main agricultural provinces. Likewise, the Executive intends to encourage the settlement of foreign currencies in a context of need for dollars to strengthen reserves and sustain its exchange rate policy.
“We want to send a clear message to the countryside, a fundamental sector for the country, and demonstrate that we are attentive to their needs. These actions confirm the commitments made by the president,” Caputo stated.
For their part, representatives of the agricultural sector stressed that this measure should not be temporary. “This tax has been a historical obstacle to the growth of the productive sector. “It is not viable to demand payment of taxes when producers cannot even cover their production costs.”said the presidents of CRA, Coninagro, Agrarian Federation and Rural Society.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
