Before the vote in the Senate Finance Committee, Finance Minister Mario Marcel anticipated the presentation of new amendments to the mining royalty project that will be presented next Monday. These indications shall include a reduction in the maximum tax burden.
According to El Mercurio, after negotiations on Tuesday in the legislative commission, the Government decided to reduce it to 47%, one point less than the figure presented on Monday (48%) and three points below the original idea of the project (50%).
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The Finance Minister said that these changes “strengthen the incentives for the expansion of investment projects, which may have lower rates temporarily compared to other operators with the same production.”
The payment of royalty, first category tax (IDPC) and final taxes (additional tax) is contemplated together, which, according to the government, allows greater predictability and certainty in the calculation of the royalty.
According to the newspaper, another novelty is a differentiated rate for mining operators who produce up to 80,000 tons, the limit to be considered subject to this taxation. In this case, the maximum tax burden limit was set at 45.5%, using the average sales of the last six years.
A third change in the proposal is that a small mining operator looking to expand its production and exceed the limit of 12,000 metric tons of fine copper will be exempt from paying taxes for up to six years, while currently it would have to pay rates between 0 and 2% immediately, as established by law.
In addition, a medium-sized operator that expands its production to exceed 50,000 tonnes will be able to maintain reduced rates of between 0 and 2% for six years.
The Government also announced the creation of a multi-year fund for citizen security that would receive contributions from both the budget and the mining royalty from 2025. In addition, it seeks to reduce the processing time of permits for mining projects by a third, through the creation of a technical table with the National Commission for Evaluation and Productivity. Also included in the draft regional revenue law will be the explicit allocation of resources to regions and municipalities, along with greater demands for transparency and auditing in the use of these funds.
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