Argentina to tax exports in economic 'emergency'

Argentina is introducing austerity measures and new taxes as it battles the effects of its deepening economic crisis.
The country's president, Mauricio Macri, made the announcement in a TV address.
Mr Macri told viewers the government's plans - including the scrapping of several ministries and a tax on exports - were a response to the "emergency" facing Argentina's finances.A stronger US dollar, which has forced up debt repayments, and economic weaknesses in the country this year have combined to put pressure on Argentina'a peso - which has lost 50% of its value against the greenback over the past nine months.
Argentina to tax exports in economic 'emergency'

The value of the Argentinian peso has collapsed
That crisis in confidence has forced up the headline rate of inflation to 30%, with the highest interest rates in the world for a central bank being introduced last week in an effort to combat the steep price increases.The government in Buenos Aires was also under pressure to act.It has already cut its budget deficit target significantly in return for $50bn of support from the International Monetary Fund being brought forward.
The reduction in government ministries, by almost half, would be expected to result in tens of thousands of job losses alongside budget savings.Five other ministries were to be merged into other departments, Mr Macri said, though no further details were given.The latest fiscal reforms could come at a price for him personally.He took office in 2015 on the back of promised support for Argentina's crucial agricultural sector - cutting export taxes in the months after his election.
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The government has argued that the weak peso has provided a boost to mass exporters of commodities such as wheat and soy but critics say farmers are suffering the effects of the worst drought to hit the country in 10 years.Mr Macri told the nation: "We must confront a fundamental problem: to not spend more than we have, to make efforts to balance the state's accounts."
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