Argentine president considers raising agricultural export tax

Argentine President Alberto Fernandez said that raising food export tariffs would help curb the rise in food prices, but he acknowledged that the current Congress does not support the practice of raising grain export taxes.

Argentina is the world’s largest exporter of soybean meal and oil and the second largest exporter of corn. Argentina has experienced high inflation for many years, and the inflation rate this year is nearly 60%, forcing the government to strive to increase domestic supply and stabilize soaring prices.

President Fernandez said that one way to decouple domestic prices from international prices is to raise export taxes. However, he admitted that if he submitted such a bill to Congress now, it would be rejected by Congress. He said that taxation is a legislative issue, and he hoped that Congress would understand this issue and support decisions of this nature when necessary.

The Argentine government raised the export tax on soybean oil and meal from 31% to 33% in March, and set up a wheat stabilization fund to drive down the price of local flour. However, if Argentina wants to raise export tariffs on soybeans, corn and wheat, it still needs congressional approval.

Argentina currently imposes a 12% export tax on wheat and corn and a 33% export tax on soybeans.

Source: Master Boyi

Post time: May-30-2022