A cost-benefit analysis of the Export rights carried out by that entity showed that, for many productive activities, particularly regional economies, This new tax pressure “would significantly harm producers, and the benefit to be obtained by the national treasury is scarce.”
The most complicated cases -according to CRA- They are wines, cotton, sheep meat, lemon essential oil, tobacco, the forestry chain, the poultry chain, the pork chain, floriculture, cassava, aromatics and spices and even some minor regional productions, such as chia, sesame, mung bean, safflower and pisingallo seeds.
“The persistence of withholdings implies an additional appropriation by the National State of the billing of the producers, who are the ones who bear the tax, since the exporters transfer it to the final domestic price paid. That is why it is essential to eliminate them,” the entity complained. it’s a statement.
Withholdings: how this type of tax affects different sectors
- Sheep meat: 85% of the export comes from Patagonia.
The 5% export duties were lowered to 0% in 2022. The abrupt increase to 15%, in a context of international prices at 50% of their value in previous years, limits any possibility of exporting in 2024.
The benefit for the treasury would be between US$1.5 and US$2 million annually, an insignificant figure for the State, but decisive for the production of 2,000 export-supplying producers. Between $500,000 and $800,000 would be taken from each producer.
- Wines: The proposed export duty rate goes from 5% to 8%. Looking ahead to 2024, the domestic wine market will suffer a sharp drop in sales due to a drop in the purchasing power of salaries, due to the abrupt rise in inflation, in the midst of the process of normalization of relative prices.
On the other hand, it is expected greater harvest, in an important context of stocks, that is, there will be a greater supply of wines. In this scenario, it is key export outlet. For varietal wines, the new exchange rate offers better prospects.
But in a sector that would have excess supply fall of the domestic market, increasing export duties, and not taking them to 0%, will be an additional blow on the chain profitability, both wineries and producers.
A possible collection for Export rights of the order of US$80 million in 2024 does not have a strong impact on public finances, and it will have a strong impact on the profitability of production, CRA warned.
- Chia, safflower and other seeds: Given the introduction of export duties, the negative impact on producers in Salta, Jujuy, Tucumán and Chaco would be enormous. Annual exports of chia, a seed produced in NOA provinces, are around US$5 million. It never had export rights until now, and suddenly you would have to pay a 15% rate. This would imply for the State a collection of just under US$769,500.
For chia producers, export duties imply a profitability drop of 33%, also considering the higher cost of herbicides, fertilizers and other costs due to the application of the country tax on imports.
Meanwhile, during the last 20 years the safflower production In the NOA it has been one of the few economically profitable alternatives in winter given its low water need. The oil that is exported generates between US$5 million and 10 million annually.
The implementation of withholdings15% would cause a severe blow to this crop. The impact on margins, which would be equivalent to a drop in direct income to the producer of approximately US$60 per ton, would lead to the reduction or discontinuation of this regional crop, affecting the contracting of services, generation of employment and labor, greater demand for inputs, according to the report.
Source: Ambito
