LatinNews Daily - 15 August 2018

Argentina: The Argentine government has announced the temporary suspension of its plan to cut taxes on exports of soya and soya by-products, notably soya meal and soya oil. Export taxes on soya beans and soya by-products were introduced under the previous successive Kirchnerista governments (2003-2015) despite the opposition from local agricultural producers, who argued that they would undermine the sector. After assuming office in 2015 President Mauricio Macri said that his government would gradually eliminate the distortive soya export taxes as part of its plans to stimulate domestic economic activity. Since then these taxes have fallen from 35% and 32% respectively to 26% and 23%. However, the finance ministry has announced that, due to the current financial difficulties, the government has decided to temporarily suspend its plans to phase out the soya export taxes for six months. The Argentine soya oil industry group (Ciara) has expressed concern over the announcement, which reverses one of President Macri’s principal promises to the agricultural sector. The measure, which is expected to generate AR$12bn (US$403m) in government revenue in 2019, is part of the government’s fiscal tightening programme.

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