translated from Spanish: The Government slashed reimbursements for exports of around 6,600 products

the Government today formalized the trimming of refunds for exports of around 6,600 primary and industrialized products, a measure to achieve a saving fi SCAL 34,000 billion pesos this year and 2019.

The measure was formalized through the 767/2018 Decree published Tuesday in the Official Gazette with the signatures of President Mauricio Macri and his Chief of Cabinet of Ministers, Marcos Peña. Also production, Dante Sica; Ministers signed the measure agribusiness, Luis Miguel Etchevehere; and finance, Nicolas Dujovne.

With this decision the Government reduced 66% the total amount paid in respect of refunds export, according to a scheme differentiated by product. The decision was defended by Sica, who said that “the readjustment does not put in a situation of risk or survival to an industrial sector, and much less to sectors in which the Argentina already has a high competitive advantage”.

Export refunds justify its existence in the effect of indirect taxes that accumulate during the production process and do not have a refund when exported. But for the Government, tax reform and the fiscal pact, which reduce the tax check and revenue, create space to make these refunds can be reduced.

Savings tax (tax between nation and provinces) of this measure is $5,000 million in 2018 and $29,000 million in 2019. Under the new regime, the refunds for beef amounting to 4%, fell to a range of 0.5% and 1.25%, according to the mode of shipping.

For the wheat flour, return that was 3%, with the Decree lowered to 0.75%; for dairy products such as cheese repayments fell from 5% to 2.5% and the milk powder was at 0.75 percent.

Rice fell from a level of between 2% and 3% to 0.25% and 0.75%; grape raisin fell 4.05 to 0.75%; concentrated grape juice, from 6% to 2.5%; the sparkling wine, from 6% to 3.25%; and wine, from 5.5% to 3%; garlic, from 4.5% to 1.25%.

Original source in Spanish