May 30, 2008

Argentina government seeks compromise by capping new soy export tax

Argentina will lower the maximum theoretical tax on its sliding soy export tax, Economy Minister Carlos Fernandez announced Thursday (May 30, 2008).

Farmers have been on strike on and off since March in protest over the new sliding scale tax on grain exports.

The change announced Thursday will not affect current export tax rates, but lowers the potential tax if grain values continue to soar.

Local television station Canal 5 also reported on Thursday that the adjusted tax follows an unexpected meeting between President Cristina Fernandez and the governors of eight provinces.

A Canal 5 reporter said the tax would come with new preferential treatment measures for small producers.