Grain exporters in Argentina reported exporting more than 1 million tonnes of corn and 300,000 tonnes of wheat on Thursday, amid rumors that the cash-strapped government could raise grain export taxes to offset the collapse of its currency. national.
The value of corn is more than that recorded in the entire previous week.
It turns out that the market was gripped by rumors that an additional fixed tax could be applied to grain exports or that the current floating tax, which was in effect last year, could be increased.
“Rumors also say that export registration may be closed until new regulations are implemented,” a market source said.
The current tax regime of charging ARS 4 for every dollar exported means that the government receives a lower percentage of taxes if the peso decreases in relation to the dollar.
Last month, the peso fell 20% against the US currency.
However, while exporters, including Bunge, rushed to register corn and wheat exports, the same desire was not seen in soybeans, which already attract a fixed export tax of 18% in addition to the broader ARS4 retention rate. per dollar exported.
Earlier this week, Gustavo Idigoras, head of the country's oilseed crushing chamber, CIARA, told Agricensus that the government was considering tax refunds on soybean oil and soybean flour to help increase crushing activity.
Currently, exports of soybeans and their derivatives are treated the same in terms of export tax.
“The government is considering several options. We want the government to lift this kind of punishment for the crushing industry,” Idigoras said.
In September last year, Argentina's government closed its export registration for a week while it implemented a new tax regime – the announcement of which sparked a rush to register grains and oilseeds to avoid the tax.
In April and August this year, exporters booked large quantities of grains and oilseeds amid similar rumors, although policy has not yet changed.
Source: AgriCensus
