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Peruvian Presidential Candidate Proposes Increased Mining Taxation and Elimination of Tax Exemptions in Government Plan

19 May 2021

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Proposed Changes

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Peru

Peruvian presidential candidate Pedro Castillo has published his government plan, including a general overview of proposed tax measures. This includes increased taxes and royalties on the mining sector, with reference made to the Chilean proposal for a new progressive royalty on copper up to a rate of 75%. Castillo also proposes to eliminate promotional tax exemptions that are no longer necessary and to eliminate tax exemptions for companies using tax havens, along with other measures to counter tax avoidance. Lastly, Castillo proposes the renegotiation of tax stability contracts with large companies. Note, the final vote in the runoff between presidential...