ARGENTINA.
REMOVAL OF VAT.
The governor of Santa Fe, the main grain and second cattle state of Argentina has proposed the removal of value added tax for the duration of the economic crisis.
Hermes Binner said ""It is important we take 25 or 39 basic agricultural products like milk, bread, eggs and beef and eliminate the VAT, but also have a recommended retail price set by the government for internal consumption.
Binner added that the conflict between the farmers and the government will inevitably continue, as there is no dialogue between the two factions. The governor added that dialogue and consensus are vital in this current crisis.
The drought has taken 1.6 percentage points off the growth of the Gross Domestic Product which was earlier estimated at 4%, owing to the decrease of production in the farm sector.