Bolivia to Levy Additional Mining Tax

Republic of Bolivia increases the tax on mining operations to improve the return for local resident. The mining and metallurgy minister Luis Albert Echazu gave speech on Friday at seminar in Tokyo held by Japan Oil, Gas and Metals National Corporation the country adds 12.5% of additional tax on corporate tax. The country levies 37.5% of tax on corporation when the metal price keeps high under new law approved in December 2007 compared with traditional 25%. Mr. Echazu emphasized the new tax don’t activate when the metal price is low when the companies should pay additional tax with more than US$ 400 per try ounce for gold, US$ 0.3 per pound for zinc, US$ 2.9 per pound for tin, US$ 2,802 per tonne for antimony and US$ 1.04 per pound for copper. Mr. Echazu said the higher tax revenue should benefit for local resident. The 80-85% of the royalty should be distributed to local government of production areas. The governments will consume 85% of the distribution for civil works and 10% for exploration and research of mining industry.