Mexicos plan to raise resource taxes could threaten
future investment in its multibillion-dollar mining sector, an
industry lobby group said.
proposes a 5-percent royalty on mining revenue to boost income
from resource extraction. But miners warn that the tax, the
first of its kind in Mexico, might deter investments.
"Taxes or royalties on
economic income decreases financing for future exploration and
reduces investment and ... the generation of value from the
mining sector to the economy as a whole," mining chamber
industry generated $23.12 billion last year, up 14 percent from
2011, while miners investments rose 43 percent to $8.43
billion, Camimex said.
The bill will be
debated in the countrys senate by year-end following its
recent approval in Mexicos congress.
However, some think
the measures dont go far enough.
"Taxes paid by mining
concessions here are minimal. It is both logical and necessary
to impose higher rates so that the nation itself can benefit,"
Jose Angel Hernandez Puente, treasurer of the National Mining,
Metallurgical and Similar Workers Union of Mexico, said.
A version of this
article was first published in AMM sister publication Steel