MEF: mining tax reform seeks to increase the tax burden by 3 to 4 points

The tax reform proposed by the Executive for the mining sector seeks to increase the tax burden by 3 to 4 points, because there is room according to the International Monetary Fund (IMF), reported the Minister of Economy and Finance, Pedro Franke.

The head of the Ministry of Economy and Finance (MEF) said that in Peru, according to the IMF report, the average tax burden in the mining sector is 41.7%. The figure is lower than in other countries such as Chile (47.1%), Brazil (47.9%), Canada (49.9%), Mongolia (55.2%) and the Congo (70.7%).

In this sense, Frankie pointed out that there is room to increase the tax burden in the mining sector. In addition, he indicated that the IMF’s recommendation is not to raise the tax pressure beyond that of neighboring countries, so as not to lose competitiveness.

Finally, he specified that the IMF report cannot be disclosed yet, because it requires the explicit consent of the International Organization’s Public Finance Department.

“We have told the IMF that we want to disclose it as soon as possible. They have told us that they have an internal procedure and as soon as they finish it, we will disclose it, we are the first interested in disclosing it, “he mentioned on Latina TV.

Reduction of the fiscal deficit

On the other hand, Franke pointed out that Peru’s fiscal deficit this year will be 3%, below the 6% estimated for this period. “We are reducing the deficit in a significant way,” he stressed.

He also added that “Peru today sells its bonds on the international market at the lowest rate in Latin America, and is considered by world investors as the least risky in Latin America,” he stressed.

At another time, he indicated that the consensus of economic analysts for the country’s growth for this year is “13% up”, an improvement over the 10% that was expected.

At the international level, he pointed out that changes in the economic policy of the United States will motivate capital to flow to that country.

Finally, he pointed out that he will insist on convincing the Congress of the Republic of the need for the Executive to obtain the delegation of legislative powers in tax matters.

“It seems to me that it is essential for Peru because this issue of tax pressure, of the State’s ability to make social expenditures is a structural problem,” he noted.