(Photo: President Fernandez met leaders from the farmer unions, last week)
Buenos Aires, December 30, 2019. “The new government of Peronist Alberto Fernandez, inaugurated in early December, hiked taxes on soybean exports to 33% from about 25%, while international shipments of corn and wheat will be taxed at 15%, up from about 7% previously”, the wire from Reuters said under the title “Argentina Agro-Export chamber reports 17% jump in 2019”.
But the wire, published by websites around the world, like Successful Farming, is wrong. Decree 37/2019 published past December 14, established 30% of export taxes for the soybean complex and 12% for cereals and other grains. These percentages were an update of the Decree 793/2013 established by the Cambiemos coalition government in September 2018.
After the publication of Decree 37/2019, in the following week, the National Congress approved a law sent by the government allowing it to eventually raise the export taxes to 33 and 15% respectively.
But the 30/12 ratio is still in force and exporters pay these taxes. The government is still discussing if the export taxes will be raised or not, and how much and when. Farmer unions that represent the small agriculturers are asking the Government for segmentation of the export tax, i.e., that lower scale farmers pay fewer taxes than medium and large ones.