The Colombian Mining Association (ACM) warned that the changes proposed, this Monday, September 26, by the Ministry of Finance with respect to the taxation of the mining sector risks remain and even, in some cases, increase, with which investments could fall.
(See: Tax has received more than 670 proposals for the first debate).
Juan Camilo Nariño, president of the guild, pointed out that although the non-deductibility of royalties is removed, it is created a surcharge of 5% for industry income.
Likewise, in the case of the exports, not only is it maintained, but the taxation for high prices is increased, which will become 20 percentage points.
Despite the fact that the union had drawn attention to the ‘benchmark’ from which the high price clause would begin to be considered (proposed at 48 dollars per ton), it was not modified and, in fact, a average of 20 years that could lead to its reduction.
(See: Tax reform goal could be less than 25 billion pesos).
Nariño pointed out that the industry already has a special taxation scheme for when there are high prices, with which this would constitute a double taxation. In addition, he stated that it could put the Free Trade Agreements (FTAs) at risk, since there is a risk of non-compliance.
“It is a recharged reform in the mining sector”, he affirmed, in view of the fact that 48% of the new resources would come from mining.
(See: Bakeries and small shops would not pay ultra-processed tax).
The president of the National Mining Association, Juan Camilo Nariño.
He also said that by generating a effective taxation of 90%, investments and mining operations themselves could be reduced, given the unfeasibility of carrying out the projects.
The union leader pointed out that this could also mean a incentive for illegal mining, given that the legal and tax conditions to formalize the operation would become too costly.
(See: Effective Tax Rate: what it is, how it is measured and other details).
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