Argentina farm sector pushes to remove tax levied on grain exports

Argentina charges 33% on soybean exports
calendar icon 24 February 2022
clock icon 1 minute read

Argentina's farm sector has asked a federal court to rule taxes levied on grain exports as unconstitutional, a challenge that threatens a key source of the country's tax revenue, reported Reuters.

Major farm group Argentine Rural Society (SRA) said late on Monday it had filed a case arguing that grain export taxes have been illegally charged since 1 January 2022.

The farm group argued in a statement that the deadline for center-left President Alberto Fernandez to regulate grain export tax rates expired on 31 December 2021, saying the 2022 budget bill - which would allow the fees to be extended - was not signed into law by that time.

Argentina currently charges taxes of 33% on soybean exports, 31% on soymeal and soy oil, and 12% on wheat and corn shipments. The South American country is one of the world's largest grain suppliers.

SRA's request would still need to go through several judicial steps but a potential rule in favor of the farmers would be a huge blow for the government, given that agriculture exports are a key source of much-needed foreign currency in Argentina, which has been long facing an economic crisis.

Fernandez's administration has a tense relationship with the farm sector, having faced much criticism from farmers last year over interventions in the corn, wheat and beef markets.

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