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A federal court declared the collection of withholdings unconstitutional

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A federal court declared the collection of withholdings unconstitutional

Photo: JUAN JOSE GARCIA

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The Federal Court of Junín gave rise to a wide-ranging appeal filed by the producers and the Rural Society of that locality and declared the collection of export duties on cereals from January 1 of this year unconstitutional.

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“Although we are facing a non-definitive sentence, certainly questionable in other judicial instances, it is good news in the search for other alternatives to defend the rights of the agricultural sector”, he explained in dialogue with Rural trumpet Alejandro Barbieri, former president of Rural de Junín and sponsor of the legal action.

As detailed, the rural areas of Arrecifes, Baradero and Junín had filed amparo actions in their respective courts claiming that the collection of withholdings is illegal since January 1 because the budget law has not been sanctioned. Indeed, On December 31 the power that the Executive Power had through the Social Solidarity Law to modify the withholding tax regime for agricultural exports. Since then, the agricultural leadership has asked the National Congress to legislate on the matter, and there are already several judicial processes open in several provinces of the country.

In this context Rural de Junín presented the amaro together with two producers, and this is the peculiarity of the case. “The important news is that Those who benefit from the ruling are the agricultural producers themselves. since they themselves were recognized as legitimate to assert the claim. The producer is recognized as a victim of export duties. It would be very auspicious if it were replicated in all courts“, Explains Barbieri, and adds:“ Guidamente is a big step, it represents a strategic change in this matter. It is to get out of the protest and directly look for a way to defend oneself“.

Therefore, the lawyer acknowledges that currently withholding taxes have a lesser impact than splitting the exchange rate. “Today the great robbery is the exchange differentialbut they are small steps that are beginning to be taken “, he concludes.

Despite this setback, the government can appeal the sentence and will continue to collect tariffs for now.

Background

In April of this year, Federal Judge No. 1 of Córdoba, Ricardo Bustos Fierro, has decided to admit the collective action presented by the Argentine Rural Society (SRA) and the Rural Society of Jesús María to stop the collection of withholding taxes in I grani.

Both entities had filed an appeal on 21 February last for the lack of legal support for the withholding tax, as they consider it “unconstitutional” and “illegitimate” after the fall of the 2022 Budget at the National Congress.

In its resolution, the federal judge admits collective action and defines “the class interested in all agricultural producers in the country”.

According to the president of the SRA Nicolás Pino, if that body had not taken amparo action against the withholdings and the government had advanced with an increase in tariffs for the export of wheat and corn, “730 million dollars would have been subtracted from circulation. Dollars “.

In 2022, the contribution of agribusiness in terms of export duties on cereals and by-products would reach 10,968 million dollars, according to an estimate by the Borsa del Rosario (BCR). The figure is higher than the 9,104 million dollars brought in by the agri-food chains in 2021.

Source: Clarin

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