President Javier Milei announced this Saturday a general reduction in withholding taxes, not just for meat, as originally planned. He called them"this great scourge that should never have existed."
Specifically, the reductions in the rates will be"as of today" 20% for grains and 26% for meat, according to what the president said in his opening speech of the Rural Exposition."It will be permanent and there will be no turning back while I am in the Government," said Milei.
The reductions also include the cuts on wheat and barley, which were already announced as temporary and will now become permanent.
How will the withholdings be reduced?
- Beef and poultry:
- from 6.75% to 5%
- Corn: from 12 to 9.5%
- Sorghum: from 12 to 9.5%
- Sunflower: from 7.5% and 5% to 5.5% and 4%
- Soybeans: from 33 to 26%
- Soy by-products: 31 to 24.5%
The 26% that soybean withholdings will remain at and the 24.5% that by-products will remain at is the same level they had during the temporary decline that ended on July 1 and that caused producers and exporters to rush to liquidate.
As of July 1, the government had maintained the withholding tax reductions for wheat and barley until March 31, 2026. They will now remain fixed. The rest of the grains had returned to their January values.
But now, the withholding tax situation returns to the rates they had, as a whole, on June 30, and to these reductions, which now become permanent, beef and poultry are added.
Milei said that" the reduction in withholdings, apart from benefiting the countryside, will boost the entire economy of the interior of the country more directly or indirectly, providing services to agricultural producers. From veterinarians and laboratories, or engineers and seed developers, to gas station attendants, tire dealers, grocers, be it a drone pilot or a silo builder, everyone benefits from the profitability of the private sector staying in the private sector, instead of being extirpated by the damned State."
NE
