February 2020- Argentina has a dramatic change of policies from 2016-2019. The Cambiemos administration, started its government putting down the withheld tax, especially for corn and wheat. This have an an excellent result in both crop production.
However in 2018 and 2019, the devaluation of peso, the recession that continued, and the increase of the external debt made hike in the taxes happen again. The different approach at this time was based on a duty in pesos per tonnes exported. The upcoming devaluations of Argentine peso made the withheld tax lower.
From 10th of 2019, Peronist administration have update the values of the withheld tax to make accord the actual value of the peso.
As a media, EfarmNewsAr have covered all this process, and you can check the different articles related to the topic.
Sometimes media who is not specialized or not related directly to agroindustry or Argentine policies made mistakes, we put the correct information in one of our latest articles, we correct wrong information from Reuters, this happened in the last days of 2019, December 31th:
Peronist administration update of taxes:
We have written about that the new administration, have update the withheld tax on the exports of grains, every value correspondent to soybean, corn and wheat is one of articles in December 16th:
EfarmNewsAR, gave every time useful updates of the consequences of Argentina government policies, we did this explaining how the new updates will update in the total of the harvest and how the exports have evolved in 2019. To understand better, how many sources will government get and how much taxes farmers will pay, please click here:
Cambiemos policy in export taxes:
Cambiemos had an approach to many of the exports taxes policies based in two objectives, the first one, maintain the withheld tax as soons as is make possible to rule Argentina, but in the other hand, Macri administration promised to cut this taxes. This happened in wheat and corn.
Also, Cambiemos had an strong will be accepted in OECD, and complete a free-trade agreement to European Union. This two objectives has been a prejudice to Argentine crushing industry, because it limits an comparative advantage in crushing locally the gains or export them. We write about the will of president Macri to accept French president Macron demands,on August 7th of 2019, here:
The summary of articles related to how Cambiemos made priorities shows, that soybean export taxes was a key source of sustainability in Macri´s administration. This is why the withheld tax was planned to be continued. The need for dollars make harder to cut this tax although the administration have promised to farmers. We publish this information on July 5th of 2019:
Farmers against the withheld tax:
EfarmnewsAR covered in every aspect the difficulties related to every season in Argentina, in 2019, the low prices were affecting the rentability of local farmers, all the farmer’s union like Federación Agraria (Agrarian Federation), CRA (Argentine Farmers Confederation) and Sociedad Rural (Rural Society) show the opposition of keeping the withheld tax. This was exposed by its leaders in demonstrations, and also in meeting with IMF. Pellegrina, actual chairman of SRA met with Roberto Cardarelli to expose that the actual level of taxes hurt the productivity and long term investments, we publish on May 15th of 2019:
The importance of Soybean producers and Crushing Industry in Argentina:
Many critical factors of Argentine economy are not well known beyond local experts. EfarmnewsAR published the reason of high taxes on soybean production and how it affected the tax collection. We publish the data developed by INTA (National Technology Agriculture Institute) which shows the importance of soybean production. Published on December 19th of 2019: