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Cargill, Bunge and other large agro-exporters suspend the sale of fertilizers due to the increase in the tax burden on imports

2023-03-30T14:25:44.901Z


The AFIP measure aims to increase government collection in pesos and prevent the outflow of dollars. It does not affect micro and small businesses.


After knowing the suspension of the exemptions of the Value Added Tax (VAT) and the Income Tax that applied to imports, this Wednesday the large agro-export companies informed their clients that they will stop selling fertilizers

.

Due to new tax charges on imports,

we are forced to withdraw from the sale of fertilizers

.

We are analyzing and interpreting the impact that these new measures will have and, as soon as we can, we will return with more information," reads the statement that several agricultural producers received this Thursday.

The decision was to be expected given the increase in taxes and the financial cost of General Resolution 5339 of the Federal Administration of Public Revenues (AFIP) published on March 29 in the Official Gazette.

Among the companies that took the lead and decided to discontinue the sale of fertilizers were

Cargill, Bunge, and Dreyfus

.

Now, the companies will evaluate the situation and the steps to follow, but with certainty, the higher costs of fertilizers

will be transferred

to the prices that producers will have to pay, most of them hit hard by the historic drought that destroyed their crops.

In fact, due to this situation, companies such as ACA, Cofco and Cargill were already analyzing who they would finance on a case-by-case basis.

"The problem is going to be the small producers who do not have access, by volume, to commit operations with the exporters who are bringing fertilizers in exchange for a future market," said a source from the sector.

The AFIP measure 

suspends until December 31 the certificates of exclusion of Profits and VAT

established by general resolutions 2,281 and 2,937 for imports of personal property.

The provision does not apply to micro and small businesses or to operations for consumption that are carried out on behalf of the National State or to those exempted from national taxes by Law No. 27,701 on the General Budget of the National Administration for 2023.

The perception of the Income Tax that is applied will not be computable in the determination of the advances of the same that is made in the terms of General Resolution No. 5,211.

Meanwhile, the VAT payments made by virtue of the suspension established

may only be computed from the ninth fiscal period after the date of import clearance

.

The national government makes the decision given the urgent need to collect pesos and avoid the flight of dollars in an electoral year marked by the crisis caused by inclement weather that will imply millions in losses and a large drop in the income of foreign currency from agricultural exports.


Source: clarin

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