01/18/2021 2:29 PM
Clarín.com
Rural
Updated 01/18/2021 2:29 PM
In the middle of the debate on the price of food, the Argentine Agrarian Federation publicly requested that the VAT be eliminated from several products of the basic basket, ensuring that
the lower tax collection would be offset by the higher income from withholdings
, from the increase in the price international grain.
In this way, the rural entity with the majority of small and medium-sized agricultural producers,
challenges the Government on the management of agricultural income
, resources that due to the international market would be several billion dollars more than what is established in the 2021 Budget. And they clarified that "since at the moment there are still no areas to express this and other ideas, we make them public in this way."
They emphasize that eliminating VAT on cuts of beef, chicken, pork, dairy, bread and mill products, oils, among others, "would be a direct way for Argentines to feel in their pockets the decrease (or at least a minor increase) of the food,
without destroying the entire export chain
, as was attempted weeks ago, "the federation said in a statement.
They are convinced that "
this measure could be financed with the differential that the State perceives as a consequence of the high international prices of grains
, which to date is even higher than the one that had been foreseen in the national budget this year. That is to say that,
without generating changes in the export system
, and only taking advantage of the rise of these products in the international market, the State receives more money from withholdings. This difference, which is an extra income not considered, could be used to finance the elimination VAT on food for Argentines and thus benefit all citizens ".
Reaction after trapping corn
In this regard, FAA indicated that it makes the proposal after the government's attempt to introduce modifications in the granary market.
"When markets are intervened through the closure of exports, quotas, and other ideas, those who lose the most are the primary producers, especially those on a smaller scale ... We have already experienced this."
In that maco, they highlighted that
"without destroying our reputation in the world, and taking care of producers and consumers, we see a huge opportunity that the government should take advantage of
, since it will raise several billions of extra dollars from the rise in soybeans and corn as withholdings, which could be used to favor the domestic market ”.
They interpreted that “every time the export conditions in our country change unexpectedly, the perception that the world has of Argentina is altered and
our competitors benefit
.
This is the complete opposite of what the economy needs.
We must continue to export to obtain the foreign exchange required by the country and the production in the interior ”.
From FAA it was always understood that "the best way to find an understanding with the national government so that public policies are agreed that allow small and medium producers in Argentina to be allies in
developing a country under a productive, inclusive and sustainable model
, is walking the path of permanent dialogue ".
"Review the tax matrix"
“The tax matrix has to be inevitably reviewed since the concentration and disappearance of producers alarms us.
We insist that taxes have to be progressive.
And the measures, agreed ”said the federated.
And they specified: “Because the idea they had days ago to close the quota for corn exports was ruled, supposedly, to ensure that the price of different meats and milk at the Argentine counter (at one point in which the country that is experiencing a
terrible economic crisis with inflationary upswing and unacceptable levels of poverty
).
They assure that
if they had consulted them, "we would have said that we shared the idea of supplying the domestic market in quantity, quality and price,
we warned that the national government made a mistake on the way: closing exports will only bring less production, higher prices in the future and less employment in all Argentina ", indicated the federated.
“
This measure was wrong, because there was a surplus stock of corn to supply the domestic market
, exceeding demand by a ratio close to 10 to 1. This conviction forced us to react to the unconsulted measure by the national government.
We are convinced (from what we already know from all the previous experiences in the country) that Argentina should position itself in the world in a better place as a food producer ”, they asserted.
And they concluded: “We understand that the current international agenda that surrounds us obliges us to be responsible actors when it comes to taking advantage of the points of agreement that we can reach to go towards generating employment and making the most of the international prices that are having today commodities, which give the fiscal air necessary to move forward. For all this, we should be able to work together with the authorities to walk the correct path, which allows producers to work and develop with
clear rules, with consensus
, but above all for the good of all and not of a few. There is a long way to go to rebuild so many productions of small and medium producers that are bankrupt ”.