Despite meeting actors from various sectors of the countryside and expanding to 36 the number of products from regional economies that will be exempt from export duties, Javier Milei’s government continues to draw criticism for its intention to maintain and in some cases increase the rate for the main crops and oilseeds and for meat. Specific, it rises from 31% to 33% for soy by-products, from 12% to 15% for wheat, corn and meat.
Both rural unions and some governors of the Core Zone provinces have clearly spoken out against this initiative contained in the Omnibus Law that the Government intends to approve this week in Congress.
From the Agrarian Federation they expressed their support for this position, as well as from the Argentine Rural Confederations (CRA). “We are disappointed that after so many years we continue to insist on already proven recipes. and that they have failed, the withholdings do not lower the price of food, as an official in this room mistakenly said, on the contrary, limit production“, they said.
From opposition bloc to dialogue, Let’s create a federal coalitionled by Miguel Pichetto, declared that it was not willing to support the proposal to increase withholding taxes on corn, wheat, meat and soy derivatives.
Nicola Massotone of the leaders of that space, with strong ties to the governor of Córdoba, Martin Llaryora, and former presidential candidate, Juan Schiaretti, they assess that the new text represents an improvement compared to the previous discussions last Thursday and perceive a different willingness to negotiate on the part of the Government.
Despite this progress, Massot raised uncertainty as to whether this text is the final word comprehensively or the beginning of a broader negotiation. She pointed it out “There are delicate issues not yet resolved”.
Finally, the central point of the controversy lies in the chapter on withholdings, in which “The Government excludes around twenty regional economies, but there are more than 7 thousand between those of the oilseeds or cereals complex, and the industrial ones which are not excluded. This discrepancy represents a significant challenge in the ongoing negotiations,” Massot said on the program Lanata Sin Filtro, on Radio Mitre.
The governor of Santa Fe, Massimiliano Pullaro, was one of the firmest in his refusal: “I will not support increasing withholdings. “The government is right to end the deficit and waste of the past, but repeats the mistake by putting a foot on the heads of those who produce, who are the object of the change the country needs,” he wrote on Twitter.
This position received support in conversations Pullaro had over the weekend with others governors of Together for Change: as Rogelio Frigerio (Entre Ríos), Gustavo Valdés (Corrientes), Ignacio Torres (Chubut), Alfredo Cornejo (Mendoza), Carlos Sadir (Jujuy), Leandro Zdero (Chaco), Claudio Poggi (San Luis) and Marcelo Orrego (San John).
Criticisms of the Renewal Front on the retentions
Former Agriculture Minister Juan José Bahillo said on X: “In 2023, with the worst drought we are experiencing, Sergio Massa lowered the withholdings. Today the government, with the best harvest in history, intends to increase them. There is another wayand we believe that we must follow the same path.
On the account of the Frente Renovador, led by Sergio Massa, on the same social network it was posted: “No to the increase in withholdings. In the worst drought in history, the withholdings were lowered. Today we are going to the largest harvest in history, and with a devaluation of 120% which multiplies the collection by four. Withholding taxes must be kept at ZERO.”
And in an attached graph they indicated that “the field has suffered a devaluation which has caused fuel, national tax and energy prices to skyrocket. This year they will lose profitability and withholding taxes also increase.”
They calculated that “withholdings from regional economies put more than 1,200,000 Argentine jobs at risk.” And “due to withholding taxes on corn and soybeans, 4.3 million tons of corn and 1.9 million tons of soybeans will no longer be valued.”
Some voices that usually do not coincide with the agricultural sector have been added to the catalog of criticisms, such as that of former government official Alberto Fernández and leader of the Argentine Industrial Union, José Ignacio de Mendigurenwho remembered him In the midst of drought, the previous government lowered withholding taxes. AND He called to reject the DNU.
For his part, Daniele Arroyoalso a former official of the previous government, said: “No to increases in withholding taxes. We need a broader, bigger and more federal Argentina. An Argentina that promotes its exports and its regional economies. A country with more work and production. “There is another way.”
The Government defends the withholdings
Meanwhile, the Government argues that it has no room to give in and that the reversal of withholding taxes in regional economies already represents a fiscal cost of approximately 800 million pesos.
“The withholdings are not what we want, it’s not what the President or any of us gathered here wants, but it’s part of an emergency, an eventual hyperinflation situation that we’re facing,” he said a few years ago. Agriculture Secretary Fernando Vilella days at the Congress.
“Withholdings mean local consumers pay less” said Milei’s top official on bioagroindustrial issues.
And he said, “To the extent that the macroeconomics improves, because the intent is that withholding taxes are not there, we will be able to lower them.”
Source: Clarin
