March 18, 2008

Argentina lowers soymeal export tax

Argentina has lowered the export tax on soymeal and sunseed meal by 1 percentage point, according to a resolution published in the Official Bulletin Monday (March 18, 2008).

On March 11, the government announced a sweeping overhaul of the export tax structure on grains and derivative products. A sliding scale was implemented with rates increasing as export values rise.

The export tax on soymeal was originally pegged at three percentage points less than soy. The reason for the shift to four percentage points less was not given. Sunseed meal will now also be taxed at four percentage points less than sunflower seeds.

The government announced last week that soyoil shipments will also be taxed at four percentage points less than the beans, and wheat flour exports will be taxed at 10 percentage points less than wheat exports.

The export tax on soy was increased to 46 percent on March 11 from 35 percent based on the government's FOB reference price of US$538 per tonne.

Based on prices as of March 11, the export tax on corn fell to 24 percent from 25 percent, the tax on wheat exports fell to 27 percent from 28 percent, while sunflower oil shipments are taxed at 36 percent, according to local brokerage Roagro.

The move comes amid a nationwide farm strike over the taxes that started last Thursday and is slated to last through Wednesday.