Farmers in Argentina are against the government’s move to allow President Cristina Fernandez retain the power to fix farm export taxes without congressional approval, Reuters reported. These extraordinary powers expire later this month.
If passed by the lower house of the Congress, the legislation will move to the Senate for approval.
Argentina is the world’s leading producer of soy, wheat and corn. The country’s farmers claim the high taxes on agricultural exports, especially the 35% levy on soy, are stifling production.
The government says the taxes are the only way they could bring succor to a contracting economy and boost falling tax revenues.