Amid discussions of personal and corporate tax reform in Brazil’s lower house of Congress, there was a possibility of higher taxes being imposed on the mining industry, the bill’s sponsor, federal deputy Celso Sabino, said on Tuesday August 3.
Sabino wants to increase the current 4% Financial Compensation for Exploration of Mineral Resources – Cfem, the official name for mining royalties in the country – to 5.5%, according to the official Congress news outlet Agência Câmara.
This would be the second rise in such royalties in four years. In 2017, the rate for some minerals was expanded
, while collection was changed from net sales to gross revenues.
Brazil would be the third country in South America, a giant global mineral supplier, whose congress or federal government was attempting to collect larger sums via mining royalties
, amid soaring commodity prices in what some analysts were calling a new super-cycle.