A proposal to levy a new royalty tax on mining profits in Mexico, the world’s largest producer of silver, passed a congressional committee on 16 April 2013. The proposal would also increase penalties for mining concessions that have not been developed after a certain period of time.
The proposal aims to reallocate profits to the states where foreign and domestic companies mine. Under the proposal, mining firms would pay a charge on net profits before tax. Mines not yet producing would pay a low, almost symbolic per-hectare fee on their concession Amendments would also be introduced to the Fiscal Coordination Law to establish the participation of the state where the mine is situated in the mining royalty.
