Markets and trade
 

Detail

Area
Argentina
Commodity Group
Oilseeds, oils and meals
Commodity
Soybeans, sunflower seed, groundnut (incl. respective oils/meals)
Date
18/09/2018
Policy Category
Trade
Policy Instrument
Export policy
Description
Reduced the export tax on soybeans, soymeal and soyoil to 18 percent, after deciding to suspend its policy of gradually reducing export taxes for soymeal and soyoil for six month in mid-August. On top of that, a new export levy of 12 percent was introduced, with a maximum limit of 4 ARS (11 US cents) for each US dollar export value. While sunflower seed and groundnut also face a 4 ARS export levy, only 3 ARS (8 US cents) are assessed on the respective oils and meals.
Notes
In mid-August, as part of a wider fiscal tightening programme, the Argentinian Government suspended for six month its policy of gradually reducing export taxes for soymeal and soyoil. Subsequently, on 3 September, the Government reduced the tax applied to shipments of all three, soybeans, soymeal and soyoil, to 18 percent – from the prevailing levels of, respectively, 25.5 percent, 23 percent and 23 percent. Simultaneously, a new export levy of 12 percent was introduced, with a maximum limit of 4 ARS (11 US cent) for each US dollar in export value. Applied to all primary product exports and driven primarily by treasury needs, the latter levy is added to the 18 percent export tax in place for soybeans and derived products. Based on the export prices and exchange rate levels prevailing at the beginning of September, soybeans and derived products have seen an effective tax hike of roughly 3 percentage points. It is important to note that, with the introduction of a uniform tax throughout the soybean complex, the country’s crushing industry no longer avails of the protection previously enjoyed in form of tax differentials. Conversely, the relative export competitiveness of soybeans has improved. The attractiveness of soybeans exports has also improved relative to grains, which could lead to larger than originally expected soybean plantings in the imminent 2018/19 season. As for the other oilseeds, the new 4 ARS export levy also applies to sunflowerseed and groundnut, whereas only 3 ARS (8 US cent) are assessed on the respective oils and meals. The lower rate also applies to biodiesel exports. The new tax rates and levies are expected to stay in place until 31 December 2020.