May 26, 2008

Argentina's soy tax may be reviewed at Supreme Court

 
The debate over Argentina's controversial sliding soy export tax could be addressed at the country's Supreme Court, one of the Court's judges said Friday (May 26, 2008).

"Above all, if constitutional matters are being raised (the dispute over the tax) is going to end up in the Court," Elena Highton, a member of the Court's nine-judge bench, told business daily El Cronista.

She said the only claim submitted to the judicial system so far is that of San Luis province. According to El Cronista's account, the province is arguing the tax, which was altered via a resolution from the Ministry of Economy in March, is unconstitutional as it is the exclusive authority of the National Congress to set taxes and legislate on customs issues.

The newspaper said San Luis governor Alberto Rodriguez Saa is also arguing the entire suite of export duties decreed since January 2002 should be repealed due to the damage they do to Argentina's system of revenue-sharing between the federal government and the provinces.

Unlike income taxes and other sources of revenue, export duties are established outside this "co-participation" system, thus exempting the government from a requirement to share 30 percent of its intake with the provinces.

The March modification of the soy export tax, sparked a nationwide revolt from the farming community.