Argentina Reinstates Export Taxes as Grain Sales Surge

Argentina has reinstated export taxes on grains and by-products after hitting a $7 billion sales cap in just two days following a temporary suspension aimed at boosting foreign currency through accelerated agricultural sales. Tax exemptions on beef and poultry will persist without a cap.

Argentina has reimposed export taxes on grains and their by-products following a two-day suspension after the country reached its $7 billion sales target. This decision, announced by Argentina's ARCA fiscal agency on social media, marks a rapid sales achievement by the agricultural powerhouse.

On Monday, the Argentine government temporarily lifted export taxes on key crops, including soy, corn, wheat, and their derivatives, such as biodiesel. The suspension aimed to entice overseas sales and raise crucial dollars to stabilize the struggling peso. As one of the largest grain exporters globally, Argentina heavily depends on agriculture to bring in foreign currency.

The tax exemption was initially planned to be in effect until the end of October or until exports hit the $7 billion mark, a milestone reached in just 48 hours. The government has confirmed that tax suspensions on beef and poultry exports will carry on until the end of October, unrestricted by sales limits, as per presidential spokesman Manuel Adorni.

(With inputs from agencies.)