January 31st, 2025

1. National Government announces tax reductions for agricultural sector
The Minister of Economy of the Nation, Luis Caputo, announced a temporary reduction of withholding taxes on the main agricultural exports and the permanent elimination of withholding taxes for regional economies. Until June 30, the rate for soybean and its derivatives will be reduced from 33% to 26%; soybean derivatives (oil and flour) will be reduced from 31% to 24.5%; wheat, barley, sorghum and corn will be reduced from 12% to 9.5%; and sunflower will be reduced from 7% to 5.5%. For regional economies, such as sugar, cotton and rice, they will be definitively eliminated. Caputo explained that although the total elimination of withholdings would require a government surplus of US$8 billion, these measures seek to alleviate the tax burden on the agricultural sector, especially in the face of challenges such as drought and the fall in international prices.
Argentina.gob.ar: “El Gobierno Nacional tomó la decisión de bajar las retenciones al campo”
2. IMF technical mission concluded, dialogue described as constructive and positive
The recent International Monetary Fund (IMF) technical mission to Argentina concluded this week. The IMF described the dialogue with the Argentine economic team as “highly constructive and positive.” Although a final agreement was not reached, both parties will continue talks in the coming weeks. The main objective of these negotiations is to establish a new program that will provide additional financing to strengthen the Central Bank’s reserves and facilitate a gradual exit from exchange control. It is speculated that the amount of financing could be around US$11 billion. One of the main points of discussion has been the exchange rate policy, including the pace of controlled devaluation (crawling peg) and certain restrictions in the foreign exchange market. The IMF has expressed its interest in greater exchange rate flexibility, while the Argentine government seeks to avoid an abrupt devaluation before the elections.
3. Political infighting continues between PRO and La Libertad Avanza
With the date of the legislative elections getting closer and closer, the PRO and La Libertad Avanza parties continue to dispute members and areas of power. This week, a group of porteños legislators who respond to Patricia Bullrich (who although she is Minister of Security of Milei’s portfolio is part of the PRO) joined La Libertad Avanza, giving the ruling party of the national Government more seats in the City. On the other hand, La Libertad Avanza issued a statement during Wednesday night announcing the expulsion of Ramiro Marra, legislator of the City of Buenos Aires, from the party, due to the fact that he voted in favor of a tax in this jurisdiction. The party’s statement said that “all those who do not respect the President’s agenda will be expelled. It does not matter who they are.” Also at the CABA level, Karina Milei is accelerating the arming to dispute the power of Jorge Macri in the City of Buenos Aires, but everything indicates that in the Province of Buenos Aires, a region where historically Peronism and Kirchnerism tend to win, both parties will present themselves united.
4. ARCA announces measures to reduce import times and costs
The Customs Collection and Control Agency (ARCA) established a new procedure for the transfer of goods with red or orange selectivity channel in the import process. The measure seeks to streamline foreign trade, reduce costs and improve customs controls, allowing importers to move their cargo from the primary customs zone of arrival to a bonded warehouse within the same customs jurisdiction. In addition, the use of the Electronic Monitoring Seal (PEMA) will be implemented to guarantee the security of the transfer. In addition, the verification of the goods will be carried out at the fiscal warehouse of destination instead of the primary zone of arrival.
Ámbito Financiero: ARCA implementa medidas para reducir tiempos y costos en importaciones
5. After firing Rodolfo Barra, government announces new Treasury Prosecutor
The national government informed this week that Santiago María Castro Videla has been chosen to occupy the position of Treasury Prosecutor. The news was made official by presidential spokesman Manuel Adorni, in what was his first press conference of 2025. Castro Videla’s arrival to the government follows the abrupt departure of Rodolfo Barra, who had to leave his position at the request of Milei, who was upset by a ruling against the national administration in a lawsuit that an agent brought against the State in an incentive case.
Infobae: El Gobierno designó a Santiago Castro Videla como Procurador del Tesoro