After Government would announce a Reduction of withholding tax on the fieldVarious companies in the industry described the decision as a positive sign known in corn and soybean cultivation as well as in wheat and barley harvests. They agreed that this is a step in the right direction and can improve competitiveness, exports and employment. However, they emphasized that there is still a long way to go and the tax burden remains high. especially in some chains such as soybeans. They remembered that too The abolition or greater reduction of withholding taxes is a long-standing demand in agriculture.
The announcement was made by the Minister of Economic Affairs, Luis Caputoand includes a Reducing tariffs in the main production complexes. The Soybeans will rise from 26% to 24%while the Soybean complex byproducts will come down 24.5% to 22.5%.
With grain is wheat and barley will descend 9.5% to 7.5%; corn and sorghum des 9.5% to 8.5% and the Sunflower from 5.5% to 4.5%. The goal is Improving competitiveness, promoting production and strengthening foreign exchange earnings.
Carlos Castagnani, President of the Argentine Rural Confederations (AVE), he remarked: “We see this decision as a good message for producers because it reinforces the government’s determination that we are on the path to the total abolition of withholding tax.”
He added: “It is a step that will lead to the sector becoming profitable again. We must focus on the complete and definitive elimination of withholding taxes, so that production can develop according to clear rules and predictability.”
In this context, from the Confederation of Rural Associations of Buenos Aires and La Pampa (Carbap) highlighted the measure and recalled that this was the case A requirement that has existed in the industry for decades. “It is a historic rural demand, the most distortive tax limiting our growth. It is clear that they are always asking for it to be done faster, but as the Minister always says, they want to do it and they will do it if conditions allow.“, he emphasized Ignacio KovarskyPresident of the company in dialogue with LA NACION.
From the Chamber of the Oil Industry of the Argentine Republic and the Center of Grain Exporters (Ciara CEC) They viewed the measure as a positive sign, but emphasized that such measures still exist tax challenges within the chain. “This decision to reduce withholding tax is a very positive step that we must appreciate. We must continue to work to reduce the enormous tax burden, particularly in the soybean agribusiness complex.“, they explained.
For its part, the Argentine Agro-Industrial Council (CAA) also supported the announcement, noting that “celebrate and highlight“Reducing DEX for Grain and Byproduct Chains.”The tax relief route is the right way for the agricultural industry to generate more exports, employment and foreign exchange“, he indicated.
Coninagro, who presides Lucas Magnano, They stated that the measure is being evaluated by the company. They emphasized: “We in our company appreciate this new step to reduce withholding tax in Argentina.” The tax relief for the producer enables a growth in competitiveness, production and exports.”
They also stated: “We appreciate the signal to rural areas and trust that the government’s goal is to continue working towards the elimination of withholding taxes.”
He also considered that the measure was part of a wider process: “We do not look at this cut in isolation, it fits into the package of measures of the work modernization project.” He also mentioned “RIMI, accelerated payback for irrigation equipment, anti-hail nets and farms, VAT exemption for irrigation and solving the problem of profit from ownership of livestock.” And he emphasized: “Taken as a whole, these are signs that improve the investment climate and point to greater competitiveness in agriculture.”
Among others, the grain exchanges of Bahía Blanca, Buenos Aires, Córdoba, Entre Ríos and the commercial exchanges of Chaco, Rosario and Santa Fe also commented. They said: “This new step, which reaffirms the path to the definitive abolition of this highly distortive tax, contributes to improving competitiveness, promoting investment and creating more favorable conditions for the development of the entire agro-industrial chain, one of the essential drivers of the Argentine economy.”
And they added: “From the stock exchanges, we reaffirm our commitment to an agenda that promotes greater predictability, clear rules and a tax environment that accompanies the sustainable growth of the country’s production and exports.”
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