Francke on new mining tax: “If it is not now, we will lose the opportunity”

The Minister of Economy and Finance, Pedro Francke, He argued that, at least, US $ 13,500 million were able to raise mining companies since the metal rally began in the international post-pandemic market, including copper, the main input exported by our country.

“The price of metals is at a very good level. More than US $ 13,500 million have entered the mining companies since the price hike began, and we believe that this wealth should be shared fairly, safeguarding the competitiveness of the sector, “he said.

In this sense, Francke Ballvé stated that a preliminary report from the International Monetary Fund (IMF), with which his office has been working for some months, points out the possibility of expanding the tax base of the mining sector to speed up the economic reactivation, especially among vulnerable populations.

“We already have a preliminary report from the IMF that says that Peru has a possibility of increasing taxes a little in the mining sector, maintaining its competitiveness and we can achieve it,” he said.

In addition, he warned that, if the reform is not implemented this year, it could only be applied from 2023, in a season in which there may no longer be this bullish metal rally in the world.

“We hope to increase the taxpayers with ex officio RUC to 2.5 million, additional to those that exist today. Regarding the Income Tax and mining taxes, if we do not approve it now, it would apply in 2023, and we will lose an opportunity ”, he revealed.

“The needs for education, health, investment in the regions, we will not be able to improve them if we do not have money. Congress has the powers, the most important thing is a policy of concertation, we will insist on dialogue because there is a lot at stake, ”the minister declared.

MEF: improve public spending

On the other hand, Pedro Francke mentioned that it is necessary to improve public spending by the State, for which he proposed to strengthen the works programs for taxes. He estimated that an execution of S / 36,000 million will be reached this year.

“We must improve the efficiency of public spending. We want to strengthen the mechanism of works for tax. Public investment this year is going to be record, it has never been invested so much as this year that we are going to reach S / 35,000 to S / 36,000 million ”, he said.

Likewise, he reiterated that this Government’s commitment is to prioritize health, housing and education problems, among other needs, that occurred after the period of confinement as a result of the pandemic, in addition to inflation driven by the exchange rate and variations in commodities. at the global level.

“Our priority is to give employment to the population, reactivate the economy, improve public works and that basic education, health and drinking water services are available to all Peruvians,” he concluded.