Controversy over Argentina grain tax continues

18 June 2008 23:57  [Source: ICIS news]

BUENOS AIRES (ICIS news)--The tax implemented by the Argentine government since March asphyxiating the biofuel industry, a source said on Wednesday.

After a hard pressure from the farm sector, the Argentine President Cristina Fernandez sent to the National Congress a bill, known as resolution 125/08, which imposed increases for the taxes on exports of grains.

However, the debate in the Congress does not apply to taxes on biofuels, implemented in last 12 March through resolution 126/08 from the Minister of Economy.

Jose Luis Martinez Justo, vice president of the Argentine Renewable Energies Chamber, told ICIS that the Chamber will meet with members of the Minister of Economy and with members of the National Congress in the next week.

“The objective is to reach differentiated taxes for small producers, who are the main ones affected by this decision,” he said in Spanish.

The farm sector is pending discussion in the Congress. The farm organisations welcomed the decision to involve Congress, even though Fernandez's Peronist Party shows a categorical majority in the legislature.

Meanwhile the farm leaders have convoked a “pray day” on Wednesday. In the meantime was made an official ceremony in Plaza de Mayo, in the center of the Argentine capital convoked by the government.

The fourth farm strike will finish at midnight on Wednesday.

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By: Cristina Kroll
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