Argentina: Project wants to eliminate grain “retenciones” in heat-affected areas

Argentine deputies opposed to the government introduced legislation to eliminate retenciones (export taxes) collected on soy and corn harvested in areas declared to be in Agricultural Emergency due to droughts and the recent heatwave.

The initiative aims to lower soybean and corn export tariffs to zero percent until December 2022 and invites provinces to lower their producers’ tax burden by lowering Gross Profit, Stamps, among other taxes.

The project uses data from the Rosario Stock Exchange (BCR), which shows that summer water stress caused soybean and corn harvest projections to fall to 9 and 8 million tons, respectively.

“The loss of net revenue in the productive sector has reached US$ 2,930 million, which will result in less freight, less financial and brokerage services, and less consumption. In total, the impact on the Argentine economy is estimated at US$ 4,800 million, or 1% of its potential GDP”, warns the project.

“The productive sector’s net revenue loss has reached US$ 2,930 million, resulting in less freight, less financial and brokerage services, and decreased consumption. The project estimates that the impact on the Argentine economy will be US$ 4,800 million, or 1% of the country’s potential GDP.

Source: Canal Rural

To read the full original article please visit:

https://www.canalrural.com.br/noticias/agricultura/argentina-projeto-quer-eliminar-retenciones-nos-graos-em-areas-afetadas-pelo-calor/

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