Argentina farmers to stop grain, beef sales after tax bill veto

Argentina's farmers will stop some grain and beef sales starting this Friday (Aug 28) after the government vetoed a law that provided tax breaks to Buenos Aires growers suffering from the worst drought in a century.

Sales to industry and exporters will be stopped from August 28 until September 4, said Carlos Garetto, president of farm group Coninagro.

The veto was the last straw as the law could have provided significant relief for areas affected by the prolonged drought, said Garetto.

The government said it vetoed parts of the bill to prevent farmers from evading taxes by claiming products came from drought-affected areas of Buenos Aires province.

Eduardo Buzzi, president of the Argentine Agrarian Federation, said the veto was a sign of aggression.

Buenos Aires province forms part of Argentina's Pampas region, where most of the country's soy, wheat and corn are grown.

The bill, which was passed by Congress, would have exempted or cut export taxes for six months on produce from southern parts of the province, the worst affected by drought this year.

Argentina levies soy exports at 35 percent.