Economy Minister Luis Caputo took to social media on Tuesday to announce a “permanent reduction” in export duties on a large number of agricultural products, including soybeans, maize, wheat and other crops.
President Javier Milei’s government will trim between one and two percentage points off the majority of agricultural exports in a bid to “improve the competitiveness of the agribusiness sector.”
The move will help Argentina improve foreign currency inflows into the country.
Milei’s government urgently needs dollars to meet debt commitments due next January. By lowering taxes and improving profit margins for farmers, it hopes to increase sales and, as a result, tax revenue.
According to Caputo, soybean duties will drop 26 percent to 24 percent, soy by-products from 24.5 percent to 22.5 percent, wheat and barley from 9.5 percent to 7.5 percent, maize and sorghum from 9.5 percent to 8.5 percent and sunflower seeds and oil from 5.5 percent to 4.5 percent.
“Today we are taking a new step in the path of fiscal relief for the agricultural sector, advancing in the permanent reduction of export duties for grain chains and by-products,” said the minister in a post on X.
Caputo said that “eliminating export duties has always been a priority for President Javier Milei,” adding that “we will continue to do everything possible to achieve this goal as soon as possible.”
He said further assistance was dependent on “macroeconomic conditions.”
The reduction in export duties is not automatic, but will come into effect when it is formally published in the Official Gazette.
“The path is clear: fewer taxes, more production, more opportunities, and work for all Argentinies,” said Caputo.
Milei's government needs to boost foreign currency inflows to bolster the Central Bank's international reserves.
In search of more financing, Milei's government will issue a dollar-denominated bond on Wednesday in an auction that marks Argentina's first return to the international debt market since 2018.
Caputo recently confirmed that he is negotiating a loan with banks worth around US$7 billion to cover financing needs.
Argentina urgently needs to secure funds to meet a US$4-billion debt maturity in January.
– TIMES/AFP/NA
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