Argentina drops disputed farm tax
Argentine President Cristina Fernandez de Kirchner has cancelled controversial tax increases on agricultural exports, which sparked months of protests.
BBC NEWS Americas Argentina drops disputed farm tax
WorldNews: Argentina’s president drops export tax hike
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BBC NEWS World Americas Argentina drops disputed farm tax
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Export levies will return to the fixed rates that existed before March, said cabinet chief Alberto Fernandez.
The Senate had narrowly rejected the government’s proposals in a vote following more than 16 hours of debate.
Farmers said the taxes would be crippling, but the government said they were needed to fight poverty.
Argentina’s president drops export tax hike
Argentina’s president drops export tax hike … After Months of Conflict, Argentina Ends Disputed Farm Tax. Argentina drops farm tax after mass protests …
The tax on farm exports was intended to fund the building of schools, roads and hospitals but strikes by farmers led to food shortages in some parts of the country and a political crisis.
The BBC’s Daniel Schweimler in Buenos Aires says that the president had little choice but to scrap the tax increases following the dramatic Senate vote on Thursday.
Senators were tied 36 to 36 after more than 16 hours of debate, until the Vice-President, Julio Cobos, cast the deciding vote to reject his government’s proposals.
Our correspondent says it is the first sign of any weakness or backwards step shown by the government, which is often criticised for its intransigence.
McClatchy Washington Bureau 07/18/2008 After months of conflict …
After months of conflict, Argentina ends disputed farm tax … 20 percent this month, an unprecedented drop after only seven months in office. …
Argentina’s farmers are delighted by the move, our correspondent adds.
‘A hungry world’
Argentina drops disputed farm tax
Argentina drops disputed farm tax. published about 4 hours ago. Argentina’s President Cristina Fernandez de Kirchner cancels tax rises on farm …
Argentina is a major producer of soya, grains and beef, which fetch high prices on international markets.
The dispute between the government and farmers began in March, when President Fernandez’s government raised taxes on soya exports from 35% to 45%, and imposed new taxes on other farm exports.
The government argued that they needed to raise taxes on agricultural exports to help build a new Argentina.
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It said farmers could afford to pay more, as they were benefiting from high prices.
The authorities also accused farmers and their supporters of undermining democracy by refusing to respect the wishes of the elected government.
However, farmers’ leaders said that any profits needed to be reinvested so that Argentina, one of the world’s leading agricultural producers, could help to feed a hungry world.
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