Farmers balk at grain export tax

BUENOS AIRES, Argentina (Reuters) — The increase in grain export taxes announced by Argentina late last year will weigh on exports as growers invest less to compensate for lower profits expected to be caused by the new levies, farmers said.

Centre-left Peronist Alberto Fernandez, who took office Dec. 10, boosted the tax rate for soybeans, soyoil and soymeal to 30 percent from about 25 percent and lifted the levy on corn and wheat to 12 per cent from around seven percent. The government needs money as it heads in to debt renegotiation talks over about US$100 billion in obligations.

Despite its powerhouse grains sector, Argentina’s economy has stalled, with inflation and poverty rising fast.

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