UPDATE 1-Argentina to gradually reduce soy, corn taxes in coming years

Argentina, a top global supplier ‌of ​grains, will steadily reduce its export taxes on its biggest agricultural exports throughout the next two years, Economy Minister Luis Caputo said on Friday. Taxes ‌on soybean exports, currently at 24%, will be cut on a monthly basis throughout 2027, reaching 21% at the end of next year and 15% by the end of 2028, Caputo told a press conference. Taxes ‌on soybean oil and meal will be reduced "proportionally," he added.

Each month of 2027 will see a ‌0.25 percentage point cut to the soybean export tax, speeding up to 0.5 percentage points in 2028, he added. He did not give more information for the reductions regarding soy products. Argentina's agriculture and economy ministries did not immediately respond to a request ⁠for details.

Export ​taxes on corn, now ⁠at 8.5%, will meanwhile be reduced quarterly by 0.25 percentage points through 2027, and 0.5 percentage points every three months of ⁠2028, Caputo said. They will reach 7.5% at the end of next year and 5.5% by the end ​of 2028. A day earlier, Argentina's government announced a cut on export taxes for wheat.

Argentina is the world's ⁠largest exporter of soybean oil and meal, and the third-largest exporter of corn. President Javier Milei during his campaign vowed to eliminate ⁠export ​taxes on the agricultural sector, a key source of tax revenue but a measure strongly opposed by farmers and agribusiness companies.

"From day one, the president said that we wanted to bring export taxes ⁠down to zero; that is the ultimate goal," Caputo said. "We are making the maximum fiscal effort possible to gradually ⁠ease this tax ⁠burden over time." "We welcome the progressive schedule for reducing export duties announced," Argentina's grain exporters and crushing chamber CIARA-CEC said in post on X. "It is the ‌best path to achieving ‌higher production and exports."

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