Argentina Slashes Grain Export Taxes Amid Economic Recovery

Argentina's government plans to temporarily lower taxes on grain exports, citing economic recovery and fulfilling a campaign promise by President Javier Milei. Soybeans, corn, and wheat taxes will be reduced, providing relief to farmers affected by drought and low crop prices. Growth in economic activity supports this decision.

In a significant move reflecting Argentina's improved economic health, the government announced a temporary reduction in taxes on grain exports, fulfilling President Javier Milei's campaign promise. The announcement comes as the agricultural sector, crucial to Argentina's economy, grapples with the fallout from persistent drought and low crop prices.

This change, effective from next Monday, will see export taxes on soybeans, wheat, and corn reduced. Economy Minister Luis Caputo emphasized that the administration is committed to lowering taxes, a statement that resonated positively with farmers who have called for financial relief.

The decision aligns with recent signs of economic recovery, marked by growth in November. Analysts anticipate a 'V-shaped recovery,' potentially closing the year on a positive note for President Milei, with reductions in inflation and poverty also in sight.

(With inputs from agencies.)