Field references went to the intersection of Alberto Fernández for his intention to raise withholdings

The word sustainability is the spring that triggers the reaction of the entire agricultural sector whenever it sounds, and even more so if it comes directly from the mouth of the President of the Country Alberto Fernández.

“The instrument by which this is best decoupled is withholding taxes, but these are a legislative issue and I need Congress,” the president said this morning in dialogue with journalist Ernesto Tenenbaum on Radio con Vos, and then added: “I am I could send an increase in withholdings to Congress tomorrow, but I will be defeated and they will say the government has failed and I have an opposition that is making tractor hits ”.

The reaction did not last long. “Alberto! If the raw material affects the final value of the bread by 13% and you increase the wheat preserves by 10%, the bread will decrease by 1.3% at most. Now, if you take VAT, the bread has to go down by 10.5 per cent“Producer Néstor Roulet suggested on Twitter.

“The President is wrong on two counts. You are mistaken in saying that withholdings separate from international prices. It has been fully shown that a very high level of withholdings like Argentina has not decoupled anything, the problem is inflation. In addition, no sector in Argentina supports higher levels of tax pressure. And on the other hand, it is hopeless to think of being a president he doesn’t look at the good chance the country has in the world with food. Instead of thinking about increasing tax pressure, they should think about reducing it so that a dynamic sector like agriculture can react and produce more food, ”said Carbap director Horacio Salaberry.

And former Minister of Agro -Industry of the Nation Ricardo Buryaile added: “Alberto Fernández’s word value has dropped at the rate of the peso. Even 24 hours ago, Martín Guzmán said they would not make a decision to raise withholdings. The president’s word is less than a dog at mass. “

Beyond rhetoric and intentions, the debate on preserves has a judicial side moving forward.

Dec. 31, 2021 expires the term set out in the Public Emergency Law appointing the President of the Nation to fix tax rates. The disallowance of Budget Law 2022, which includes a 2-year extension of that power, eliminates export duties required after the aforementioned date of legal support.

Currently, withholdings on wheat and corn are 12%, while soybeans and oilseed by-products have an aliquot of 33 percent.

A few weeks ago, Federal Judge No. 1 of Córdoba, Ricardo Bustos Fierro, to admit the joint action shown by the Argentine Rural Society and the Jesús María Rural Society to stop the collection of withholdings on grains.

Both entities were presented on February 21 last year an amparo action for lack of legal support in withholding tax because they considered it “unconstitutional” and “illegitimate” after the 2022 Budget collapsed in the National Congress.

In his resolution, the federal judge acknowledged collective action and limited the “affected class to all agricultural producers in the country.” In addition to “ordering the legal representative of the Argentine Rural Society to inform the Court of the various common means of communication with the members forming the class, to assess the one most appropriate to inform them of the processing of the case . ”

In his decision, Bustos Fierro ordered that the Federal Administration of Public Revenues (Afip) must present its report within 30 days, in order to establish its position.