Xinhua News Agency, Buenos Aires, September 22 (Reporters Zhang Duo, Wang Zhongyi) The Argentine government announced on the 22nd that it will temporarily cancel the export withholdings tax on agricultural products such as grains, beef, and poultry meat. Argentine Presidential Spokesperson Manuel Adorni stated that this measure will last until October 31.
According to Argentine media reports, the cancellation of the export withholdings tax is aimed at promoting the country’s agricultural sector to export more agricultural products to increase the supply of US dollars and stabilize the local currency exchange rate. Analysts said that the Argentine Congress will hold mid-term elections in October, and temporarily canceling the export withholdings tax on some agricultural products will help alleviate the foreign exchange tension before the elections.
Recently, Argentina’s financial market has continued to be volatile. The exchange rate of the Argentine peso against the US dollar has depreciated significantly over the past month, and the bond and stock markets have also fallen simultaneously. Last week, the Central Bank of Argentina used foreign exchange reserves to intervene in the foreign exchange market.
In July, Argentine President Milei announced a permanent reduction of the agricultural export withholdings tax on beef, poultry meat, corn, sorghum, sunflower seeds, soybeans, and their by-products. Specifically, the tax rate for beef and poultry meat was reduced from 6.75% to 5%, corn and sorghum from 12% to 9.5%, sunflower seeds from 7.5% to 5.5%, soybeans from 33% to 26%, and soybean by-products from 31% to 24.5%.
