Argentina Revokes
Controversial Farm Tax
The Argentine government
on Friday abolished the
controversial Resolution
125 passed on March 10
to raise taxes on grain
exports.
President Cristina
Fernandez signed the
abolition decree one day
after the Senate
narrowly defeated a
government tax hike on
grain exports, with Vice
President Julio Cobos
casting a decisive "no"
vote after four months
of farm protests.
The move brought back
the taxation on
agricultural and
livestock exports to the
level in November 2007.
In the case of soybeans,
the tax rate was
returned to 35 percent
from the 47 percent
levied under Resolution
125.
Farmers' associations
expressed satisfaction
about the measure, but
noted that they would
continue to pursue
policy changes to favor
smaller producers.
Argentina, the world's
third largest producer
of soybeans that exports
over 95 percent of its
production, had been
gripped by conflicts
between the government
and farmers over the tax
increases.
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