Article 202 of the “Law of Bases and Starting Points for the Freedom of Argentines” indicates: “The rate of the export right for all goods is established at THIRTY-THREE PERCENT (33%).s soybean byproducts currently reached by an aliquot of THIRTY ONE PERCENT (31%). He National Executive Branch “will identify the tariff positions of the Mercosur Common Nomenclature included in this article.”
The former Minister of Economy Sergio Massa had returned to the soybean export industry two points of export duties, reducing the withholding rate to 31%, which will now be increased again. The rest of the cereals, such as wheat and corn, will pay a 15% export dutiesjust like the sunflower.
In total, 18 products will have 0% withholdings: olive, rice, bovine hides, dairy, fruit (excluding lemon), horticulture, beans, potatoes, garlic, chickpeas, peas, lentils, honey, sugar, yerba mate, tea, equines and wool. The wine sector will continue with withholdings of 8%.
Withholdings: the reaction of the sector
The Argentine Agroindustrial Council (CAA) today expressed its “deep concern and rejection of Section VI (Export Rights)” of the bill “Bases and Starting Points for the Freedom of Argentines” sent today by the Executive Branch to the National Congress.
In a statement, the CAA reiterated that “this type of projects with increases in export duties are contradictory with the generation of employment, production and exports that the government has expressed.
“Although the need to achieve fiscal balance is shared, said objective It will not happen by increasing taxes on regional economies agroindustrial and other agroindustrial export value chains such as meat, fishing, soybean and wheat industrial complex, among others,” highlighted the agroindustrial entity.
The CAA anticipated that “it will warn of this ewrong decision to legislators and will ensure that the increase in duties and other measures provided for in Section VI of the aforementioned bill are corrected and eliminated. Furthermore, the CAA recalls that the incoming government announced in its campaign that it was going to eliminate the power of the Executive Branch to impose export duties and that it would proceed not to impose these types of taxes.”
The statement was also shared by the Chamber of the Argentine Oil Industry (CIARA).
According to the estimate of Juan Manuel Garzón, economist of the Mediterranean Foundation, If the bill sent by Javier Milei to the National Congress is approved, some US$7.3 billion will be collected in withholdings, US$1.1 billion more than expected.
According to the same work, with the soybean complex remaining with 33%, the rcollection would be US$4,611 million against the US$4.39 billion that would be collected without the increase in by-products.
In the case of corn, which would go from 12% to 15% withholdings, US$1,284 million would be obtained, an extra US$257 million. For wheat, which would also increase withholdings from 12% to 15%, the Government would keep US$113 million more due to the increase, reaching US$422 million.
The Executive would raise US$440 million, an extra US$176 million in the health sector beef, that the rate increases from 9% to 15%.
Source: Ambito
