Mexico’s mining industry chamber (Camimex) has requested the federal government eliminate fiscal disincentives for 2020, the tax deductions and the refund of the value-added tax (VAT), as mechanisms to support the industry.
These actions and the implementation of an adequate public policy would help to build trust among mining investors, Camimex said.
Recently, Camimex said the industry expects investment of $ 24.2bn over the next six years, if there is an adequate public policy that encourages mining activity.
The chamber proposes the deduction of 100pc of exploration expenses, and continuation of the universal tax compensation for certified mining companies. Moreover, it proposed signing a financial agreement that give certainty to investors by freezing the tax contributions to 15 or 20 years.
Camimex said that in 2018 paid taxes of 46,993mn pesos ($2.4bn), of which 33,997mn pesos corresponded to Income Tax, known locally as ISR, about 9,176mn pesos to surface rights and 3,840mn pesos of new taxes.
The Mexican authorities have said that over the last 36 years, the last governments have granted dozens of concessions to mining companies that cover 80mn hectares, which represents 40pc of the country.
US$1=MXN19.55 pesos (as on Dec 3, 2019)