Faced with the loss of PAIS Tax collection equivalent to 1.44% of GDP this year, which already suggested a considerable effort to recover resources, The Government added another US$800 million drop in resources due to a reduction in withholdings for the countryside. The figure will represent a significant price improvement for exporters.
According to the consulting firm CEPEC, “according to current FOB prices, it implies an additional benefit of approximately “US$28 per ton of soybeans and US$6 per ton of corn.”
“The reduction of withholdings was a recurrent demand of the agricultural sector, since these taxes directly affect the international competitiveness of Argentine products. However, withholdings also play the role of decoupling international prices from local ones, especially in contexts of high inflation,” explains CEPEC, which states that “The estimated fiscal cost is US$800 million annually.”
Therefore, he maintains that the measure may have fiscal implications because it contributes to “a lower income for the State in a scenario of budgetary tension.”
On the other hand, he points out that by lowering the cost of exports, “could increase pressure on local prices of food, generating an impact on the general price index”.
To obtain the benefit you must pay within 15 days
The Ministry of Industry and Commerce indicated that “with the aim of collaborating with the situation of the field in this context of low international prices and adverse weather conditions, “The National Government decided to temporarily lower withholdings by 20% until the month of June, inclusive.”
“The measure reflects the Government’s decision to reduce the weight of the State for the productive sectors, within the framework of the fiscal surplus policy. Through a decree that will be published in the coming days, a reduction in the rate of the main crops will be established. In this way, soybeans (beans) decrease from 33% to 26%; soybeans (oil and flour), from 31% to 24.5%; sorghum and corn go from 12% to 9.5%; and sunflower, from 7% to 5.5%,” the note says.
It is clarified that “to access the retemporary deduction of Export Rights, producers must settle 15 days after submitting the Affidavit of Foreign Sale (DJVE), without boarding obligation, which is maintained for 360 days from the Affidavit.” “You may also choose not to use the benefit and settle within the normal period,” the note says.
Source: Ambito

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