Uruguayan President José Mujica has announced his intention to raise taxes for farms of more than 2000 hectares, website Lanacion.com.ar reported.

The story reported the president did not speak about the proposal with Agriculture Minister Tabaré Aguerre or Finance Minister Fernando Lorenzo before the announcement.

"We have a crisis of growth (5.5%) and this is positive, and these things happen because we are growing," Mujica was quoted as saying.

Uruguayan President José Mujica

He said the tax proceeds were also needed as the government lacked the funds needed to pay for rural public works that would  benefit farmers, the story reported.

"Raising the low land tax, paying three or four dollars more per hectare in large areas is not a catastrophe or a calamity - (it's) not a profound change in the rules."

Alfredo Asti from Mujica's own Frente Amplio party pointed out the president had earlier pledged not to raise agricultural taxes.

"You can't just make changes on the fly, it's immoral; 'you plant, you harvest, and then I tell you I'm going to put more taxes.' No," Asti was quoted as saying.

Photo: Prensa Libre

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