The fishing industry demanded a tax reduction regime, given that they are losing profitability due to “high costs and excessive tax burden.”
Temporary relief from reduction of withholdings in key products of the national agricultural export caused so many positive feelings in traditional rural sectors such as resentment in those industries that were not contemplated by the measures. Among them, the companies dedicated to fishing.
Through a statement signed by the Chamber of Fishing and Freezer Shipowners of Argentina (CAPeCA) and the Argentine Patagonian Chamber of Fishing Industries (CAPIP)the main actors in the national fishing industry expressed their “surprise and deep concern at having been excluded” given that “the combination of high costs and excessive tax burden puts at risk the continuity of very important fisheries, which already present a situation of imminent bankruptcy”.
“The decision to exclude the fishing sector from the announced reduction in withholdings puts at risk a productive system that not only provides foreign currency, but is also engine of regional development, generating thousands of direct and indirect jobs in complementary activities such as the construction and maintenance of vesselslogistics and input production,” they noted.
Fishing Industry Puerto Madryn.jpg
The fishing activity is reached by the Single Extraction Rights, tariffs at destination and withholdings ranging from 1% to 9% depending on the volume and added value of the product. Considered a regional economy, it has a strong impact on the economy of the Patagonian provinces and the Atlantic Coast of Buenos Aires.
Finally, the fishing chambers stated that the exclusion “puts at risk the work carried out to guarantee the environmental sustainability of the activity“and demand the “immediate inclusion in the withholding reduction regime, in order to avoid the negative impact that this decision could have on the economic, social and environmental sustainability of the industry.”
Reduction of withholdings: how the rates were
The Government’s announcement, which will extend from next Monday, January 27th until June 30thestablishes a new withholding scheme for crops:
- Soybeans: 33% to 26%
- Soy derivatives: 31% to 24.5%
- Wheat: 12% to 9.5%
- Barley: 12% to 9.5%
- Sorghum: 12% to 9.5%
- Corn: 12% to 9.5%
- Sunflower: 7% to 5.5%
Besides, Withholdings will be eliminated from regional economiessuch as the sugar and tobacco.
Source: Ambito
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