- Title: Argentina's new economy bill hikes taxes on farm exports
- Date: 17th December 2019
- Summary: BUENOS ARIES, ARGENTINA (FILE - OCTOBER 2019) (REUTERS) EXCHANGE RATE BOARD VARIOUS OF HANDS COUNTING U.S. $100 DOLLAR BILLS HANDS COUNTING $1,000 AND $500 ARGENTINE PESO BILLS
- Embargoed: 31st December 2019 17:39
- Keywords: Alberto Fernandez Argentina Argentina economy Argentina taxes Martin Guzman agricultural exports economy foreign assets higher tax rates
- Location: CHACABUCO / BUENOS AIRES, ARGENTINA
- City: CHACABUCO / BUENOS AIRES, ARGENTINA
- Country: Argentina
- Topics: Currencies/Foreign Exchange Markets,Economic Events
- Reuters ID: LVA002BAD811F
- Aspect Ratio: 16:9
- Story Text: Argentina's government is seeking higher taxes on agricultural exports and to tax foreign assets held abroad, the economy minister said on Tuesday (December 17).
The government wants to raise export taxes on wheat and corn to 15% from 12%, Economy Minister Martin Guzman told a news conference. The bill, dubbed by the government the "Social Solidarity and Production Reactivation" project, would also raise the tariff cap on soybean exports to 33% from 30%.
President Alberto Fernandez was elected in October with a mandate to end the painful fiscal cuts implemented by his predecessor, Mauricio Macri. Fernandez's voters expect more state spending to help families struggling with low growth, rising poverty and rampant inflation.
The proposed tax increases come as the government gets set to restructure about $100 billion in debt obligations. It says the revamp of loans and bonds needs to be done by the end of March in order to keep the financial system functioning.
The government's proposal, which was sent to Congress on Tuesday, seeks funds to bolster social spending the new administration grapples with annual inflation close to 55% and an economy that is expected to contract for a third straight year in 2020.
In addition to the modification of taxes to agricultural assets, the bill seeks to tax financial assets abroad. The purchase of foreign currencies would be taxed by 30%, Guzman said.
The present formula to increase Argentina's pension payments and public service tariffs would also be suspended for 180 days until the government creates a new one, he said.
(Production: Juan Bustamente)
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