Peru sees big drop in income from mining companies
miningweekly.com
By: Liezel Hill
Published on 5th January 2009
LIMA - Peru, a leading global exporter of minerals, expects income taxes paid by mining companies to fall sharply this year because of lower prices, the mines and energy minister said Monday.
In 2007, Peru received about 10-billion soles ($3,2 billion) in income taxes paid by mining companies.
The central government split half of this, or 5 billion soles, with regional and local governments that have come to rely on the income. The payouts were mainly made last year.
But next year income for regional and local governments will drop.
"Because of the international crisis, the share of local governments will be 2,5 billion soles less," the minister, Pedro Sanchez, said on RPP radio.
The tax-sharing system was designed to help reduce social tension in mining regions, which are often poor and places where residents frequently clash with big foreign mining companies.
Sanchez did not say how much receipts from royalties, which are charged on the value of concentrates a company produces, would fall next year.
"Our forecasts for the volume of mining output still show growth, although not enough to offset the fall in prices," Sanchez said. |
