Argentine “regional economies” to be tax-exempt on exports from September

From September onward, Argentina’s “regional economies” will experience a change in taxation on exports.

Sergio Massa, the current Minister of Economy, recently confirmed the forthcoming policy change.

Starting on September 1st, Argentina’s regional economies will no longer be subjected to withholding taxes on exports, Massa stated during a speech at the annual Rural Exposition in Buenos Aires.

He countered local opposition claims about imposing taxes on 200 regional economies, clarifying that only six agriculturally linked economies would be taxed until the end of August.

In addition to this, Massa backed the government’s recent tax and foreign exchange actions, purposed to heighten tax collection and boost revenue from the liquidation of regional economies’ foreign currency from agricultural exports.

He described these as “transitory measures” tailored to current circumstances.

Some of these measures include a 25% PAIS Tax on dollar purchases for paying services excluding health and education; and a 7.5% tax on foreign currency used for services payment, excluding essential goods like medicine.

Also, a 10% hike in the savings dollar was approved, amounting to a total of 75%, and a temporary differential exchange rate of 340 pesos per dollar was set until the end of August for regional economies’ products.

Lastly, Massa addressed the IMF program and drought’s impact on Argentina’s economy, emphasizing the importance of the country’s countryside as a key driver for economic growth and the need to support it with additional economic stimulators.

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