Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Chile's senate approves mining royalty bill, passes to final vote

Published 05/10/2023, 09:50 PM
Updated 05/10/2023, 09:55 PM
© Reuters.
HG
-

SANTIAGO (Reuters) -Chile's senate approved on Wednesday a long-awaited new mining royalty bill, passing it back to the lower chamber for a final vote that could come as early as next week.

Chile is the world's top copper producer and the bill aims to raise taxes on large copper producers.

Earlier this week, the government said it reached an agreement with senators to cut the top tax rate to 46.5% from 47% for companies that produce over 80,000 tonnes of fine copper a year, and 45.5% for production in the 50,000-80,000 range.

The bill had initially proposed a ceiling of 50%, but this was brought down repeatedly amid legislative debate and criticism from the mining industry.

The bill is part of the government's wider plan to overhaul the country's tax system, a key part of which was shelved by Congress in March.

The royalty bill also establishes a 1% ad valorem tax on copper sales from companies whose sales exceed 50,000 tonnes of fine copper, as well as a tax ranging from 8% to 26%, depending on the miner's operating margin.

Chile's National Mining Society, known by its Spanish initials Sonami, issued a statement Tuesday saying that even with the adjustments to the original proposal, the bill's total tax burden for the sector remains higher than in competing countries.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.