Chilean Finance Minister Mario Marcel revealed Tuesday that the government plans to add restrictions to a long-pending mining royalty bill amid criticism that it could affect the industry's competitiveness, MiningWeekly reported, citing Reuters. Speaking to the Senate Finance and Economics Committee, Marcel suggested that the restrictions, which do not change the overall picture of the bill, could be changed at the legislative stage. "One of these is the inclusion of start-up expenses in the cost of calculating the adjusted taxable income from mining operations", Mr Massel said, a change that would make the calculation of mining operations income "the same as the current specific tax". Another change is to cap the level of the overall tax burden, making it "safer and more predictable". Under the latest changes, the "AD valorem" portion of copper royalties is taxed at a fixed rate of 1 per cent of sales and a floating tax of 8-26 per cent, depending on mining operating profits.
