In recent days, President Alberto Fernández announced that a possible increase in withholdings or the implementation of a stocks is being evaluated.
In recent days, President Alberto Fernández made a statement that alerted the agricultural sector. The president said that an increase in the withholdings that the field pays for the products it exports or the implementation of an export stocks were being evaluated.
This news, as mentioned, put the Argentine countryside on alert, which did not take long to respond publicly to the statements made by Fernández.
From the Confederación Intercooperativa Agropecuaria (Coninagro), released a report in which they show in what position Argentina is located with respect to the taxation of its exports. As explained by the sector entity, “the withholdings on exports they are a phenomenon that is not used in most of the countries of the world and that does not accompany the productive or export capacity “.
In fact, “of the 50 countries that export the most on the planet, only 5 tax to exports and one of them is Argentina “, indicates the report.
According to a study by Index Mundi which, in turn, was published by Coninagro, the few countries that have taxes with a certain importance on exports in the world are the following, according to their collection for these taxes measured in dollars:
These are the countries that have the most taxes on exports, according to the study
It is important to note that this information refers to the tax collection to exports in absolute terms, that is, the dimension of the economy or exports is not reflected.
Thus, it can be seen that the only countries with “retentions” of any relevance are Indonesia, Russia, Kazakhstan, Uzbekistan, Ivory Coast, Tanzania, Guinea, Argentina, Cambodia, Iran, Cameroon, Uganda and Hungary. According to the information released by Coninagro, it is a dozen countries of the 180 countries on the planet. Furthermore, when analyzing the list of major exporters of the world – which are the most successful in exporting – it can be seen that taxes on external sales are not present. In other words, the most successful in their exports do not have withholdings, that is, they do not tax foreign sales.
From Coninagro they assure that in Argentina the tax pressure on the sector is very high
“These days we are seeing increases in fuels and services, plus a high tax pressure, and this scenario, what it does is weaken the confidence in the field man who works on the specificity of productive cycles, since it loses predictability, “said Carlos Iannizzotto, president of the entity that brings together agricultural cooperatives. In turn, he added that he thinks” well what the President says about ‘taking care of the Argentine table’, but it is also good take care of those who produce, the merchant who raises the blinds of his businesses, let’s not demonize exports “.
“We believe there is a tax collection effort by the State on a sector, in which 90 or 95% of its production goes to export “, sentenced the leader of the sector.
On the other hand, Iannizzotto pointed directly to the Government: “The price formation It has multiple factors that cause it, but I wonder, And who controls the public spending of the State? “.
In that sense, he considered that “for the troublesome of local market prices, the cooperative system emerges as an efficient alternative, where sectors converge productive, industrial and commercial “.
What’s going on in the world with withholdings
According to a list of the World Trade Organization (WHO), there are 50 countries that generate 93.3% of total exports worldwide, which transforms them into the largest exporters in the world.
That list confirms what could be seen in the previous image. Indonesia only, Russia, Hungary, Argentina and Kazakhstan are among the world’s top 50 exporters taxing exports. In turn, among the older 30 exporters In the world, only Russia is on the list of countries that impose taxes on exports.
“This leads us to conclude that more competitive do not impose taxes on exports and that those who do, in general, are not among the most successful in terms of outside sales“, says the Coninagro report
“When we refer to computing the Tax pressure direct real tax on exports, in addition to withholdings, there are other taxes in Argentina paid by exporters such as taxes on profits, on some assets, on financial activities or on production support services, on imports, sometimes taxes on added value in the productive chain, added to the provincial and municipal rates “, reflected the head of the entity.
A clearer perspective to understand this problem
From Coninagro they suggest considering the incidence of the transfer of taxes from exporters to the treasury in order to understand the general impact of withholdings. This implies measuring the participation of the tax collection to exports in total collection.
In turn, they point to the importance of comparing it with other countries because exports they assume that companies that trade abroad compete in the world.
In this sense, the World Bank provides a list of countries according to the incidence in total collection of export taxes. In that list, Argentina and Kazakhstan appear as the two countries where exports are most taxed in relation to the total collection of the country.