Eduardo Jacobs: “Argentina had to pay interest and capital, which is unacceptable for any country in the world”

The economist, Edward Jacobsevaluated, in dialogue with Canal E, the government’s recent decision to reduce withholding taxes and its impact in a year in which agriculture is preparing for a strong recovery.

Eduardo Jacobs emphasized: “We are facing a challenge a harvest“, and that the measure comes at an unexpected but positive time: “Nobody waited that at this time the government is announcing and has announced a reduction in withholding tax.”

The government took advantage of the expectations of the agricultural sector

As he explained, the decision is based on production forecasts: “Based on the calculations of the harvest that Argentina will have, they took advantage and said: We will take another step in this process, which is the removal of withholding taxes“. He also considered that the cut is coherent from a fiscal and productive perspective: “It is one of the government’s priorities in terms of taxes that distort the economy.”

Jacobs described this tribute as “a tax.” frightening“, although he recalled that his constancy responds to immediate needs: “It affects tax collection in a framework in which you are very finite“In addition, he warned that the provinces were increasing their spending: “During the year 25, the provinces have increased their spending above the rate of inflationwhich triggers another round of discussion.”

The importance of credit on an economic level

Likewise, he said that the key to credit-driven economic growth lies: “Credit It will be the great driving force of the economythe Argentine economy works with a ridiculously low credit score“.

Regarding possible exchange rate pressure from agriculture, the interviewee said: “No, not at all.” And he made it clear that Argentina does not have a debt problem, but rather a trust problem: “Argentina has a high level of debt ridiculously low internationallywe don’t have a debt problem, We have a trust problem“.

In return, he explained that the country was making extraordinary efforts: “Argentina had to pay interest and capital, which is not sustainable for any country in the world“.