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Mexico to tax mining more in 2025

Wednesday, 04 December 2024 11:06:03 (GMT+3)   |   San Diego
       

The Mexican Congress, dominated by the ruling political party, approved on Tuesday the new Federal Rights Law that will affect the mining industry in Mexico, the Senate of the Republic reported in a press release.

“In 2025, income from rights, exploitation and products is projected for MXN 374 billion ($17.95 billion), which represents an increase of 10.4 percent in real terms, against what was planned” for 2024, the Senate reported.

With the new approved law, the special tax duty on mining will go from 7.5 to 8.5 percent. In addition, an extraordinary tax duty on mining will increase from 0.5 percent to 1.0 percent.

The government's justification for generating higher taxes on 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.

Specialists on the subject in Mexico have commented in the past that higher taxes on mining will discourage investments of almost $7.0 billion in 2025. Citing specialists in the field, they said that it will be an obstacle for 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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