Most Argentines Want Gov’t To Cut Farm Taxes

Click on Chart to Expand

An overwhelming majority of Argentines say the government should back down and lower export taxes on farm products, according to a new survey by consulting firm Felipe Noguera y Consultores.

The poll, which surveyed 1,080 people and was published Saturday in newspaper La Nacion, shows that 78% of Argentines believe “the government should reverse course on export taxes so farmers lift the agriculture strike.” Just 14% disagree.

These numbers bode poorly for government officials who have been hoping farmers would lose popular support and soften their opposition to the taxes.

In March the government created a sliding scale for exports of corn, wheat, soybeans and other goods. At one point the duty on soybeans rose to 45%, infuriating farmers who had not anticipated such high taxes when they planted the crop. The export taxes rise or decline in accord with commodity prices. Higher prices mean higher taxes.

Prior to March, the tax on soybeans, which are Argentina’s top export, was fixed at 35%. Before that, it was 27.5%. Farmers have been complaining about export taxes since they were first introduced in 2002, shortly after Argentina devalued its currency.

The taxes provide the government with billions of dollars in revenue each year. But economists say the government loses between $35-$55 million in revenue for each day that the farm strike continues. Farmers began their second strike last week and say it will last until at least May 15. If the government does not budge on taxes, farmers may extend the protest.

Link: The original government resolution raising export taxes (in Spanish)

Popularity: 1% [?]