October 2, 2020

Argentina plans to introduce temporary soy export tax cut

A local Argentine industry source said Argentina will announce plans to cut soybean and soymeal export taxes temporarily by 3 percentage points to 30% to boost export revenue as Argentina struggles with recession and declining foreign reserves, Reuters reported.

According to the Buenos Aires-based source, who has direct knowledge of the situation, the tax cut is expected to last until end-2020, and will be restored to 33% in January.

The source said the government has not discussed with the agriculture industry about the temporary tax cut, adding that the government will take independent measures on soybeans and soy byproducts in hopes that it will persuade farmers to boost selling.

Argentina's Economy Ministry did not wish to comment, but a news conference has been called with new economic measures expected to be announced.

In 2019, exports of soy and its derivatives gained US$15.7 billion for Argentina

In the 2019 / 2020 season, farmers in Argentina sold 32.2 million tonnes of soybeans, which translates to 60% of the harvest. According to official data, this was 4.4 million less than sales in the same period in the previous season. The 2020 / 2021 crop season begins later in October.

-      Reuters