Due to the drop in grain prices, Argentine Rural Confederations (CRA) called for a schedule of reductions in export duties, better known as “withholdings”. Its owner, Miguel Simionispoke within the framework of the anniversary of the Rosario Stock Exchange (BCR) and insisted on the historic claim of the countryside, in an event also attended by Javier Milei.
Soybeans, which have a 33% export duty, will begin planting next October and have shown losses in rented fields in several production regions. The same is true for corn in certain regions, whose planting will begin next month.
“Regarding the withholdings, we know the intentions of the current authorities to eliminate them when the conditions are met. We understand the situation, but we need, given the drop in international prices, the rise in production costs and tax pressure, toAgree with the authorities on a gradual schedule for reducing withholdings, “until it is completely eliminated,” said Carlos Castagnani, president of CRA, at the Chaco Rural Expo in Margarita Belén.
According to the president of the entity, “It is imperative to give a message” to producers that they are going “on the right path.” He said: “Today the numbers show losses, which will affect the prospects for planting and the incorporation of technology, which identifies us worldwide.”
On the 140th anniversary of the Rosario Stock Exchange, as was said, Simioni also focused, among other issues, on withholdings. He stressed the need to move forward in a scheme until its final elimination. “It is a hackneyed topic, and you know that in this house you have heard it many times,” he said. He explained that in that entity they made a report that revealed that the price is “similar to 2006,” this is deflated by inflation.
The head of the Rosario Stock Exchange added that, although the Government has recognized this problem, The fight to eliminate this tax continues. He mentioned the joint work with different actors, including at the recent Rural Exhibition in Palermo.
Foreign exchange restrictions, PAIS tax and withholdings: what Javier Milei said in Rosario
President Javier Milei assured that sHis “commitment” is to eliminate withholdings and promised to lift the dollar restriction, although he avoided giving specific dates for its completion when giving a speech at the opening of the Rural Exhibition.
“Nobody is so keen, and I in particular am not so keen to get out of this system that, between taxes and restrictions, expropriates 70% of the production from the countryside,” Milei emphasized from the property located in the Buenos Aires neighborhood of Palermo.
Under the watchful eyes of producers, agricultural authorities and his Cabinet, the president assured: “We said that we were going to eliminate the restrictions; Every day we eliminate regulations. We only pay for 15% of imports, today we pay for 80% of imports, and every day we are closer to opening the corralito”
“We must also know that removing the patches without first solving the underlying problem would worsen the crisis we inherited. Therefore, We don’t care how much pressure there is or where it comes from.“We are not going to rush demagogically. We are going to respect the achievement of macroeconomic balance and we will move forward as it is achieved,” he added.
Along the same lines, he stated that “once inflation approaches 0%, We will finally release the trap once and for all and forever.” He also announced that in September the Country Tax will be reduced to 7.5% with a view to its elimination during the month of December.
Source: Ambito
