Following President Javier Milei's announcement of a permanent reduction in withholding taxes on several key products in the Argentine economy, such as soybeans, corn, meat, and chicken, the sector interpreted this as a sign of support for production, although other leaders warn that it remains to be seen how these measures will impact the value chain and regional competitiveness.

“Starting today, withholding taxes on beef and poultry will be reduced from 6.75% to 5%. Corn and sorghum will be reduced from 12% to 9.5%. Sunflowers will be reduced from 7% and 5% to 5.5% and 4%,” Milei explained in his speech. Regarding soybeans, one of the country's main exports, he stated: “Withholding taxes on soybeans will go from 33% to 26%, and on by-products from 31% to 24.5%,” Milei said at the main event of the Palermo Rural Exposition.

The president emphasized that these reductions represent a 20% drop in withholding taxes on the grain chain and a 26% reduction in the livestock and meat chain."These reductions are permanent and cannot be reversed while I am in office," Milei stated, emphasizing the stability of the measure.

Reactions from the countryside to Milei's announcements

Rural leaders, representatives of agro-industrial chambers, and producers shared their initial impressions following the presidential announcement. They emphasized the predictability that a"no-reverse" reduction brings.

The Buenos Aires Grain Exchange (BCBA) welcomed the presidential gesture and considered it a key step toward strengthening competitiveness. “The @bolsadecereales welcomes the reduction in the DEX announced by the government. The President keeps his word and takes a step in the right direction to improve the competitiveness of the agricultural sector. Challenges remain, but this is a sign in the right direction,” they expressed on their social media accounts.

The Argentine Agroindustrial Council (CAA), one of the country's most important cross-sector platforms, expressed this view. In a message posted on its official account, it emphasized:"President Milei's announcements at the Palermo Rural Exposition regarding export duties are on the right path to eliminating the worst of all taxes: the DEX."

"We reiterate our support for these measures and will continue working to eliminate them completely, as was done in the past with the duties applied to regional economies and partially to meat," they added.

From the Chamber of the Oil Industry (CIARA), its president, Gustavo Idígoras, considered the measures announced by Milei to be a concrete step toward greater competitiveness."The President's announcements at the Palermo Rural Exposition are auspicious, both in terms of facilitation, deregulation, and incentive measures, as well as export duties," he stated.

In particular, he highlighted the reduction in soybean withholding taxes"from 33% to 26% and from 12% to 9.5% for all grains. This will be permanent, generating a favorable impact on production, which we fully support."