Mining tax to be based on mineral prices

- Wednesday, January 24, 2007

Mining tax to be based on mineral prices

Bolivia's mining ministry has announced that the complementary mining tax (ICM) will be calculated according to the prices of each mineral on international markets.

A bill to apply this system will be presented to congress in the coming days, according to local press reports.

The proposal aims for the Bolivian state and its people to benefit from mining revenues, given that mineral prices have risen considerably in recent years, deputy mining minister Alberto Echazú was quoted as saying.

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In December, the government announced plans to increase the ICM and incorporate several minerals into the tax system that are not currently taxed.

SILVER TAX

According to Echazú, modifications to the ICM will impose taxes upon all silver concentrates, which previously were only taxed when produced in very large quantities.

The announcement sparked concern among cooperative miners, who have declared a state of emergency and warned they could return to the Huanuni mining district, where they clashed last October with salaried miners, leaving 12 dead.

The cooperatives believe the ICM should be charged only to large multinational companies, the reports said.

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