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Argentina To Share Soya Tax Revenue Amongst Provinces

by Leroy Baker, Tax-News.com, New York

23 March 2009

The Argentine government is to distribute the revenue generated from a tax on soybean exports amongst the nation's 23 provinces.

The decision was announced by the country's President, Cristina Fernandez, with the stated intention of increasing funding for the development of schools and hospitals across the country.

The government has calculated that around ARS6.5bn (USD1.8bn) will be collected, which would increase federal funding for the provinces by around 11%.

The move is believed to have upset local farmers, who have spent months protesting against the 35% export tariff levied on soya exports - the country's main crop.

According to the farmers, the tariff is having a significant impact upon their profitability, and they are urging the government to lower the rate for up to 12 months whilst the economy recovers from the current financial downturn.

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