An expected relief: the reduction in withholdings, an opportunity for agricultural development

The recent decision by the national government to reduce withholdings on agriculture has been received with moderate but significant enthusiasm by rural entities. In the midst of planting corn and soybeans, and with the wheat and barley harvest underway, the measure comes at a key moment for a sector that has historically borne a high and often distorting tax burden. The reduction, while not solving all the complaints, is read as a political and economic gesture that recognizes the central role of the agribusiness in generating foreign exchange and employment. The announcement includes reductions in the main production complexes: soybeans will go from 26% to 24% and by-products from 24.5% to 22.5%; wheat and barley will drop from 9.5% to 7.5%; corn and sorghum from 9.5% to 8.5%, while sunflower will decrease from 5.5% to 4.5%. This tax relief, estimated by the sector at around 600 million dollars, is projected as a direct incentive to production and to the improvement of the ...