The Argentine government announced this Saturday (19) the increase from 31% to 33% of tariffs on the export of soy flour and oil and the creation of a Wheat Stabilization Fund, with the intention of controlling domestic prices, after President Alberto Fernández declares “war on inflation“.
Through two decrees published in the country’s Official Gazette, the government made the increase in rates official, suspending until December 31 a 2020 decree that reduced export taxes on soy flour and oil to 31% and reinstating the value of 33 %.
Argentina is the world’s leading exporter of soy flour and oil. A two-point increase in the tax would imply an additional tax collection of US$ 425 million for the Fernández government, according to a report by the Buenos Aires Grain Exchange (BdeC).
In another decree, the government announced the creation of a fund “with the objective of stabilizing the cost of a ton of wheat purchased by Argentine mills”.
Among the reasons for taking such measures, the government said that Russia’s invasion of Ukraine has significantly affected the global supply of agricultural products.
“The new international situation requires urgent measures to be taken that contribute to the stabilization of internal prices of essential products for the food of Argentines and Argentines, as well as maintaining a volume adequate to the supply needs of the internal market”, indicated the decree.
Source: CNN Brasil
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