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Mexico aims to tax mining more in 2025

Thursday, 21 November 2024 11:18:25 (GMT+3)   |   San Diego
       

The Mexican government, through the Ministry of Finance (SHCP), proposed to Congress to increase two tax rights paid by the mining industry, according to press reports.

The Economic Package for 2025 sent to Congress for voting and approval considers increasing a special tax right on mining from 7.5 to 8.5 percent. In addition, increasing an extraordinary tax right on mining from 0.5 percent to 1.0 percent, the online portal Reportacero published.

The economic package was delivered to the Chamber of Deputies on November 15 and must be approved no later than December 31.

The government's justification for higher taxation of the mining industry is that companies in the sector obtain significant benefits from the rise in international metal prices, and that minerals and substances from the subsoil are non-renewable assets of the nation that must be optimized.

According to the newspaper Reforma, higher taxation in mining will discourage investments of almost $7.0 billion in 2025. Citing specialists in the field, they said that it will be an obstacle to investments by companies from the United States, Canada or other countries, which will have repercussions on the next review of the USMCA in 2026.


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