Argentina’s fruit industry has received a welcome boost with the news that the country’s export tax is to be cut from 4% to 3%. The move is aimed at making the South American giant’s products more competitive on the world’s markets. The reduction applies to 207 products, including fresh fruit.
The tax was first imposed in January 2018 in a bid to offset the country’s trade imbalance in the light of a weak peso. According to Diario de Rio Negro, the tax break is estimated to save the fruit industry US$19.1 million, including US$11.9 million in the pome-fruit-growing region of Rio Negro alone. The region exported around US$400 million of fresh apples and pears in 2018.
It is expected that the fruit sector will now be pressing the government to eliminate the export tax altogether.