Argentina grain export taxes not going away any time soon

Published 2024년 8월 7일

Tridge summary

Argentina's President, Javier Milei, has reiterated his government's commitment to removing export taxes on grain exports, although a timeline for this was not provided. Currently, these taxes range from 12% to 33% depending on the crop. The decision to remove taxes was made to reduce the high tax burden on farmers, which is currently preventing them from generating profits, especially when compared to farmers in Brazil and the US. However, the financial situation in Argentina means the government needs the revenue from these taxes, and there are plans to increase them temporarily as part of an Omnibus Law. The government has already eliminated export taxes on beef and dairy cattle. The high tax burden and the potential removal of these taxes are impacting the decision-making of large farming companies in Argentina.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Argentina’s President, Javier Milei, recently visited the largest agricultural fair in the country and reinforced his commitment to removing export taxes on grain exports. He did not indicate when the taxes might be removed, saying it will be done when macroeconomic conditions allow it to be done. Speculation is that the taxes could be removed sometime in late-2025, but that is uncertain. The current export taxes are 33% for soybeans, 31% for soybean oil, 31% for soybean meal, 12% for corn, 12% for wheat, and 7% for sunflowers. The soybean crushers in Argentina use the 2% tax differential between soybeans and the products as their built-in profit margin. Milei vowed to reduce or eliminate the taxes when he took office, but in an Omnibus Law he sent to Congress, it proposed a temporary increase in the export tax. The financial situation in the country remains dire and the government needs the revenue from the export taxes. The government did eliminate export taxes on beef and dairy ...

Source: UkrAgroConsult