ARGENTINA – Argentina’s government has implemented a significant reduction in the beef export tax, lowering it from 9% to 6.75%, according to a decree issued on Tuesday.
This 25% tax cut partially fulfills a campaign promise made by President Javier Milei to support the agricultural sector.
The decree, published in the Official Gazette, stated that the tax reduction aims to boost sales to international markets, enhance the income levels of producers and processors, and improve Argentina’s position in global markets.
As a traditional heavyweight in the global beef export industry, Argentina’s primary beef export market is China.
President Milei, known for his right-wing libertarian views, had pledged during his campaign to abolish export taxes on agricultural products.
The tax reduction comes at a time when Argentina is experiencing a sharp decline in domestic meat consumption.
Economic difficulties have led beef-loving Argentines to cut back on their steak intake, with meat consumption expected to hit a historic low this year.
A market report published on Friday by the Rosario exchange indicated that beef consumption in Argentina for 2024 is projected to be around 44.8 kg (98.77 lb) per capita, the lowest level since record-keeping began in 1914.
This is a stark contrast to the historical average of nearly 73 kg per capita.
The country’s economy is grappling with severe challenges, including triple-digit inflation, a recession, and rising levels of poverty and unemployment.
Since taking office in December, President Milei has implemented austerity measures to curb government spending and has lifted the previous administration’s freeze on beef prices.
Argentina’s beef-eating culture, renowned for its steakhouses, cattle ranches, and traditional asado barbecues, is facing a transformation as economic pressures mount.
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