After a meeting between the entities that make up the Liaison Commission of agricultural entities (CEEA), they issued a statement in which they made a “moderate” claim to the government of Javier Milei.
The topics addressed “revolved around the request for modifications to measures maintained by the current government; proposals for the defense of regional economies; warnings regarding strong tax pressure; problems of certain productions far from ports that suffer high logistics costs; high price of foot-and-mouth vaccine; among others that we are working on.”
Through that statement, they reported that they reiterated the request for a hearing to the president of the Central Bank (BCRA), given “the lack of responses to what was requested more than three months ago, due to the surcharge on the rate for wheat producers and soybeans with more than 5% of stocks, given the credit needs for the next 24/25 campaign.”
“Also with respect to the announcement of facilities for the importation of food, as we timely warned, we see in this measure the risk that, if there are not equal conditions for local production, it generates a very important risk for them, both due to the high tax burden as well as the costs generated by inflation, especially in regional economies due to their cost structure,” they add.
Regarding tax issues, they assure that they suffer “severe damage caused by excessive tax increases and the creation of rates in several districts of the country, which add to the high tax burden, the risks of falling into double taxation; only in order to raise more and not rationalize spending or provide better services. In this we reiterate the call to national, provincial and municipal legislators, who are the ones who approve these measures with their vote. In this framework, the high tax burden, which takes 65% of income in general and even more in certain productions, means a significant increase in production costs, not only due to increases in fuels (which have a 47% % taxes), logistics, and now the country tax, applied to dollarized inputs.”
When it comes to delving into some of the points, they particularly state that before the start of the Foot and Mouth Disease Vaccination Campaign, “there is concern about the high cost of the vaccine, and particularly in reference to neighboring countries, therefore This issue will be raised with the control bodies to find out their details. “We opened a consultation period within the entities on the cost of the vaccine.”
“In addition, we have received concern from those areas far from ports, where high logistics costs make production prohibitive. Proposals were made regarding adding value to primary production at its points of origin, for which issues linked to investment in biofuels and other processes that promote value addition will be studied, as well as raising the need for carry out or improve railway, road and port infrastructure works,” they concluded.
2024-03-30 11:30:00
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