(Photo: Leandro Cuccioli, head of the Fiscal Federal Administration)

Buenos Aires, October 3rd. A good news for the Government, but a not so good one for the farmers: export tax collection reached 4,4% of the total fiscal mass collection in September versus a 2,1% a month ago.

Unexpectedly, in August, the President Macri’s Administration decided to reimpose taxes over the exports: AR$4 per dollar exported to primary products (raw materials) and AR$3 per dollar exported to industrialized products. With an exchange rate rounds AR$ 38/40 per dollar, this measure means an export tax between 10 to 11 percent.

Previously, the Government had denied the possibility to reimplant export taxes, but the critical situation of the economy brought them to “erase with the elbow which was written with the hand”.

Now, Mr. Leandro Cuccioli, chief of the Public Incomes Federal Administration (AFIP) showed that during September, the Government collected AR$13.21 billion from export taxes, versus AR$6.36 billion in August. The interannual growth reached 165% in September.

But farmers are worried because the 2019 Fiscal Budget, sent to the Parliament by Government, foresees that export taxes could reach until 33% of the FOB price. Currently, the soybean complex is tributing a 26 to 29% rate, because an 18% export tax is added to the fixed AR$3 or AR$4 per dollar exported.

The Argentine Grain Storage Association rejected the possibility that representatives approve an 33% export taxes in 2019. “We have accepted, in silence, the elimination of the export tax rebates; then the increase of export taxes to the soybean complex, and the reimpose of the export taxes to the corn, wheat and all of the exports”, says the association in a press release. “Does it possible to think in new investments when from the night to the morning the Federal Administration can increase the export taxes to a 33% rate? Where the necessary juridic security to encourage the investments?”, the association manifests.