Detail

Argentina

Oilseeds, oils and meals

Soybeans, soyoil, soymeal, sunflowerseed

01/12/2019

Trade

Export taxation

Raised the export tax for soybeans, soyoil and soymeal from 25 percent to 30 percent, and that for sunflower seed from 7 percent to 12 percent.

ARGENTINA – export policy: On 14 December, citing fiscal policy reasons, the newly formed Government removed the export tax limit of 4 ARS for each US dollar in export value that had been in place for selected commodities since September 2018, including oilseeds and derived products (see MPPU Oct.’18). As a result, Argentina’s export tax on soybeans, soyoil and soymeal exports has risen to 30%, while that for sunflowerseed shipments reached 12% – compared to the prevailing tax levels of, respectively, 25% and 7%. Subsequently, on 21 December, Argentina’s Congress authorized the government to raise, for a period of two years, the export tax on soybeans, soyoil, soymeal and sunflowerseed by an additional 3 percent – to, respectively, 33% and 15%. Reportedly, small farmers would qualify for full or partial reimbursements of the additional 3% tax, depending on their annual production volume. According to industry sources, the higher export duties would lead to lower plantings, with 2020 soybean output possibly falling by 1–1.5 million tonnes compared to earlier forecasts. Meanwhile, the Government has launched consultations with the farm industry on the possibility of reintroducing export tax differentiation, which would be aimed at encouraging the production and export of soyoil and meal as opposed to beans.