Freeport Indonesia to process 400,000t of copper concentrate at new smelter
Earlier this month, Freeport obtained an export permit for the rest of the year from the government.
Peru’s finance minister Pedro Francke said on Thursday a proposed tax reform would increase fiscal coffers by about 12 billion soles ($3.03 billion), or 1.5% of the country’s gross domestic product.
The bulk of the new revenue will come from hiking taxes on the mining sector, although Francke said in a news conference that exactly how much those rates will be increased has not been decided. Peru is the world’s No. 2 copper producer.
“Our studies show that there is room to raise (mining) taxes for those with large operational net incomes,” Francke said, providing details on a tax reform that was unveiled on Wednesday.
The South American nation is working with the International Monetary Fund in order to come up with a proposal that the government in Lima hopes will not affect the sector’s competitiveness.
Peru has one of the lowest tax-to-GDP ratios in Latin America and left-wing President Pedro Castillo has made it a cornerstone of his new administration to raise revenue in order to fund new social programs. Peru’s tax-to-GDP ratio stood at 13% in 2020, according to the finance ministry.
The tax reform proposal still needs to be approved by Congress, which is controlled by the opposition.
($1 = 3.9663 soles)
(By Marco Aquino; Editing by Paul Simao)
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