Chile plans to raise copper mining royalties and taxes on high-income earners
2022-07-04 14:13:33 [Print]
Chile's finance minister, Mario Marcel, last Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms.
A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000 tonnes. The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5 per Lb. Both components vary based on the price of copper.
According to Marcel, smaller copper producers will continue with the current system. The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.
A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000 tonnes. The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5 per Lb. Both components vary based on the price of copper.
According to Marcel, smaller copper producers will continue with the current system. The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.
Copper Rod TC Ф8mm EXW China
Unit:RMB/mt
China copper concentrate producers' sales volume statistics by province by month
Unit: mt
