Argentina's government is seeking a tax hike on agricultural exports and to tax foreign assets abroad, the economy minister said on Tuesday.
In a new bill, the government proposed raising export taxes on wheat and corn to 15% from 12%, Economy Minister Martin Guzman told a news conference. The bill, dubbed by the government the "Social Solidarity and Production Reactivation" project, would also raise the tariff cap on soybean exports to 33% from 30%.
The government's proposal, which was sent to Congress on Tuesday, seeks funds to bolster social spending amid a recession and rising poverty as the new administration of President Alberto Fernandez grapples with annual inflation close to 55% and an economy that is expected to contract for a third straight year in 2020.
In addition to the modification of taxes to agricultural assets, the bill seeks to tax financial assets abroad. The purchase of foreign currencies would be taxed by 30%, Guzman said.
The present formula to increase Argentina's pension payments and public service tariffs would also be suspended for 180 days until the government creates a new one, he said.
"All these measures are intended to be part of a comprehensive program. They are all interconnected. We are being very careful in solving all the imbalances," Guzman said.
Argentina's new economy bill hikes taxes on farm exports, foreign assets
Source: Reuters.com