Argentina Slashes Export Taxes on Grains Boosting Agricultural Sector

Argentina announced a reduction in export taxes for grains, including soybeans and corn, welcomed by the farming sector. The tax cut, seen as a step towards tax relief, aims to support President Javier Milei's agenda. Analysts suggest limited immediate impact but potential future benefits.

Argentina is set to reduce export taxes on key agricultural products such as soybeans and corn, as the economy minister revealed a tax cut program welcomed by the farming community. This move aligns with President Javier Milei's strategy to gradually lower taxes while maintaining government revenue.

The levy on soybeans will decrease to 24% from 26%, with soybean byproducts taxed at 22.5%, down from 24.5%, stated Economy Minister Luis Caputo on social media. Initially, these taxes were 33% and 31% respectively, at the start of Milei's term.

Global market dynamics could see limited immediate effects from these changes, but experts predict a potentially larger influence on future seasons. Argentine farmers are currently busy with wheat cropping and setting fields for soybeans and corn, a scenario likely affected by these tax alterations.

(With inputs from agencies.)