Post by
Jman1076 on Sep 07, 2018 11:20am
Argentina Export Tax
What happened is that in an attempt to control its public finances, Argentina just announced a new special, temporary, export duty applying to all exports. This export duty comes to 3 Argentine Pesos per each $1 in exports. With the USD/AR$ trading at 38.3, this means were looking at an effective 7.8% tax on exports. Now, this tax applies to revenues, not earnings, so the impact can be significant. Ceteris paribus (ignoring other effects), this tax would effectively wipe out nearly 50% of Orocobres FY2018 adjusted profits.