Argentina scraps tax on industrial exports
BUENOS AIRES: Argentina’s new pro-business president said on Monday he would end taxes on exports of industrial goods, hours after announcing large tax cuts on agricultural exports.
“We have to reward exporters. As of today there will be no more taxes withheld on industrial exports,” Mauricio Macri told the Argentine Industrial Union.
The export tax rate for the industrial sector was previously five percent.
The move came on the heels of the conservative president’s announcement that he would eliminate export taxes on wheat, corn and sorghum, and cut the tax rate on soybeans from 35 percent to 30. The decision fulfilled key campaign pledge to Argentine farmers, who staged massive protests in 2008 when former president Cristina Kirchner slapped steep taxes on the key agriculture sector.
Farmers in the South American agro-giant had been hoarding their crops waiting for better conditions. Macri took office on Thursday, ending more than a decade of left-wing rule in Argentina.