After learning of the suspension of the value added tax (VAT) and income tax exemptions that applied to imports, large agro-exporting companies informed their customers this Wednesday that They will stop selling fertilizers.
“Due to new import tax charges we are forced to withdraw from the sale of fertilizers. We are analyzing and interpreting the impact these new measures will have and will come back with more information as soon as possible,” reads the statement that several agricultural producers received on Thursday.
The decision was expected given the increase in taxes and the financial burden of the general resolution 5339 of the Federal Public Revenue Administration (AFIP) published on March 29 in the Official Gazette.
Among the companies that took the initiative and decided to stop selling fertilizers were Cargill, Bunge and Dreyfus.
Now the companies will evaluate the situation and the steps to follow, but with certainty the higher costs of fertilizers they will move at the prices that producers will have to pay, most of them hard hit by the historic drought that destroyed their crops.
Indeed, due to this situation, companies such as ACA, Cofco and Cargill were already analyzing who they would finance on a case-by-case basis. “The problem will be small producers who don’t have access, in volume, to engage in deals with exporters who are bringing fertilizer in exchange for a future market,” an industry source said.
The measure of the AFIP suspends the profit and VAT exclusion certificates until 31 December which established general resolutions 2.281 and 2.937 for imports of movable goods. The provision does not apply to micro and small enterprises or to consumption operations that are carried out on behalf of the national State or to those exempt from national taxes by law n. 27.701 on the general budget of the national administration for 2023.
The perception of the income tax which is applied will not be computable in the determination of the advances of the same which is carried out pursuant to general resolution no. 5.211.
In the meantime, VAT payments made under the established suspension They can only be calculated from the ninth tax period following the import customs clearance date..
The national government takes the decision given the urgency of collecting pesos and avoiding the escape of dollars in an election year marked by the crisis caused by bad weather which will lead to millionaire losses and a sharp drop in foreign exchange earnings from agricultural exports.
Source: Clarin
