Argentine President Cristina Fernandez on Monday asked Congress to eliminate some of the taxes paid by biodiesel manufacturers in a bid to support an industry hard hit by European Union anti-dumping measures, which was the country’s main export market.
Argentine biodiesel exports are expected to plunge as much as 39% this year compared to 2013 due to tariffs imposed by the European Union, according to the Argentine industry sources.
The proposal would eliminate the 22% tax on biodiesel for power generation and the 19% levy on liquid fuels. The tax cut would last only as long as Europe’s sanctions do, according to the proposal. Apparently the EU measure will be enforced during five years.