The government this week launched an across-the-board cut in farm tax withholdings, sending soybean production to its lowest level in 19 years. Other industries They hope that cuts in export taxes levied on them will also be announced.
“The Chronicler“I was expecting the government to work on a plan to boost exports. Various sectors are hoping that news of reduction in withholding taxes will come.”
In this sense, industrial sectors are expected Changes that create a “level playing field” in tax matters. Due to the acceleration of imports and the alignment of the industry’s demands, the topic has become more topical in recent weeks. Given the opening up, particularly for inputs like steel. Current sector retentions contribute approximately $70 million to the state treasury.
The industry trusts this Soon there will be news about the reduction of the remaining withholding taxes on industrial products. Expanding elimination is on the table Retentions on steel and aluminum, which was suspended in October to offset tariffs imposed by some importing countries. Its validity would remain until the tariff reaches 45%.
The suspension applies until the end of the year.
It should be noted that the elimination It has not been applied to all steel and aluminum products, about the Taxes of between 3 and 5% still apply.
Steel and aluminum play a special role in the context ofAs part of the trade agreement with the United States, Section 232 was expected to be reviewedwith both products included at a 50% rate.
Also outstanding are the Petrochemical and automotive industries, which were excluded of elimination Total retentions on 90% of industrial exports. Both are also among the most important export complexes in the industrial sector. In the automobile case, the average 5% is compounded by the fact that the exemption for additional exports has not been extended.
A “wink” from the government is expected in all these sectors. They estimate that after the reduction in agricultural products, there could be a similar measure for industrial products. The tax is not expected to begin in 2026.
“The government is at a time when it is showing solidarity with various sectors. It would not be surprising that after the “pampering” of the landscape, there is also something for industry. We need everyone’s support,” complains an official MP who knows nothing about an “imminent” loss, but also doesn’t consider it a “remote” possibility.
The government presented the draft on Tuesday Commitment to fiscal and monetary stability It prohibits deficit budgets and stipulates that changes in spending or revenue must be offset to ensure a balanced outcome.
According to ABECEB, GDP and consumption will grow by 4% next year, with growth across all areas, which will support Caputo’s thesis of higher revenue per activity.
For the consulting firm founded by Dante Sica, the industry will grow in the next year but production will be 4% lower than in 2023, “a reflection of competitive pressure from imports.” and the slow recovery of some manufacturing sectors.”
Also contributing to the industry’s expectations is fishing, the eighth export sector to request to be included in the withholding tax reduction. The Intermediate Chambers of the Argentine Fishing Industry They called on business to analyze the abolition or reduction of withholding tax on the products of the complex. Especially given the context of Volatility of international prices and the “high structure of internal costs”. The government had said it would analyze it, but they are retained in the budget.
The expectation is based on the recently announced cut for agriculture, which reduced all tax rates except corn by two percentage points. The measure will have a fiscal cost of 0.1% of GDP. This implies a collection loss of $700 million in 2026. The surplus target would remain at 1.5% of GDP as the government had already considered a 0.1 point cut from the 2025 target, according to LCG.
This sector has an average deductible of 6%, although this varies depending on the product. However, the impact is particularly strong: the volatility of international prices and the strong seasonality of raw material reproduction contribute to the fact that 90% of production is destined for export, since consumption in Argentina averages up to 6 kilos per person per year.
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