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The new Argentine government raises export taxes

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  2. The new Argentine government raises export taxes

15 Dec 2019

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The new Argentine government raises export taxes

 A decree issued by the new government in Argentina on Saturday increased taxes on exports of soy, wheat, and corn in the new Argentine a blow to farmers in that grain-exporting country in order to increase the returns needed to avoid defaulting on a large sovereign debt.

The new Argentine

The government of center-left President Alberto Fernandez, who took office on Tuesday, raised the prices of soybeans, soybean oil, and soy feed from about 25 percent to 30 percent and raised taxes on corn and wheat from about 7 percent to 12 percent.

The decree also raised taxes on beef exports from seven percent to nine percent.

And farmers in Argentina had widely expected their profits to be hit by some form of tax hike as a result of the government facing $ 100 billion in debt rescheduling talks.

Argentina is the third-largest exporter of corn and soybeans and is the largest supplier of soy feed.

Argentina faces huge debt owed in 2020 and difficult financial goals agreed with the International Monetary Fund under a conditional loan agreement of $ 57 billion agreed with the former president of the country in 2018. Fernandez said that the agreement with the International Monetary Fund should be modified.

 

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