December 10, 2009

Argentina grants drought stricken farmers several tax breaks

Argentina will grant a host of tax breaks to farmers in 10 provinces that were affected by severe drought, the director of the national tax agency AFIP announced Wednesday (December 9).

Farmers who suffered from the drought will have 30 days to solicit the benefits, which include deferred payment of income taxes and the suspension of court-ordered tax collection efforts against affected individuals, AFIP director Ricardo Echegaray said.

Earlier in the day, rumours that Argentina was considering lowering the export tax on soyoil or sunflower seed oil weighed on prices at the Chicago Board of Trade.

However local traders were incredulous. "I haven't heard anything about this and it would be really strange for them to do something like that," said brokerage Panagricola SA Vice President Ricardo Baccarin.