The new government in Argentina raised export taxes on soy, wheat and corn last weekend, angering the country's farmers. The government wants to increase its tax revenues in order to shoulder the enormous interest burden on its huge mountain of debt.
The center-right government of Alberto Fernandez, which took office on Thursday, increased export duties on soybeans, soybean oil and soybean meal from 25% to 30%. Duties on corn and wheat exports will rise from 7% to 12% and those on beef from 7% to 9%.
Argentina's farmers are already complaining about high input costs, a high inflation rate and a drought. Now their income from exports is also being cut by the tax authorities. The South American state has more than 100 billion in debt and now wants to renegotiate its debt with its lenders.
Argentina is the world's No. 3 exporter of corn and soybeans and the No. 1 exporter of soybean meal. Farmers had expected a tax increase in advance and are now disappointed with the level of the increase. During the election campaign, the new head of government had promised to talk to the farmers before making any decisions.
The farmers' lobby is appalled by this approach. This was not a good start for the government, according to a statement.
Source
HANSA Terminhandel
