Save
PrintPeru's new tax agreements with mining companies are expected to bring in six times as much revenue in the next five years compared to the last five, according to the country's mining and energy minister
Carlos Herrera Descalzi estimates that the cumulative taxation will amount to 15 billion Nuevos Soles ($5.4 billion) over the next five years, compared to some 2.5 billion Nuevos Soles over the last five.
"The agreement consists of a variable percentage which will be adjusted to reach the agreed value," the energy and mining ministry said on Friday.
The taxes would apply from September for all miners, as opposed to a deal under the previous Alan García government where payment was voluntary, Descalzi said.
Also, the new taxes applied to miners' operating profits rather than revenues. Percentages will vary according to each company's operating margin.
Miners agreed last Thursday to pay as much as 3 billion Nuevos Soles per year in taxes, according to prime minister Salomón Lerner Ghitis.
The measures are part of president Ollanta Humala's plans to invest in social programmes through raising mining royalties and taxing mining profits.
The figure of 3 billion Nuevos Soles was an estimate based on miners' profits and metals prices in the first half of 2011, Peruvian newspaper El Comercio reported.
A similar system was adopted late last year in Chile, which increased royalty rates to 14% from 4-5%.
Several big mining companies operating in Peru have signed tax stability agreements in the past which are still valid, other publications noted. In those cases, miners have accepted higher taxes from September.
Peru is the world's largest silver producer, second-largest copper producer, and third-largest producer of zinc and tin, according to the Peruvian energy and mining ministry.
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think