LatinNews Daily - 28 September 2022

* Juan Camilo Nariño, the president of the Colombian mining lobby Asociación Colombiana de Minería (ACM), has said that the tax reform bill submitted by President Gustavo Petro’s government places an excessive burden on the mining sector and could lead to falls in investment and production. Speaking at a press conference, Nariño said that “the tax structure should coincide with business realities” and that “these [tax] contributions are going to diminish and fall drastically in the short and medium term.” He stated that coal production would be particularly impacted, and predicted that foreign investment in the mining sector would fall by 17%. “It puts at great risk the viability of the Colombian mining sector, future investments, and most seriously, the stability of 640,000 families” involved in the sector. The tax reform bill, which is awaiting debate by congress, proposes various measures that would affect the mining sector, including windfall taxes for exports of coal and gold. These windfall taxes would be imposed when the value of these exports exceeds a base level set by the national hydrocarbons agency (ANH), with companies to be taxed at 10% on excess profits.

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