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12/21/16

Argentina: The mining export tax will not be reintroduced

After negotiations with opposition political groups, the Macri government in Argentina today reached an agreement on a 2017 tax package which was passed this afternoon by the upper house of Congress (Senate) and is expected to be passed by the lower house of deputies then signed into law by Macri soon. Most of the deal is about higher minimum level for non-taxable salaries for workers, but one point that matters to us is that the opposition plan to reinstate the 5% export tax on mining has been dropped. In the words of Sergio Uñac, governor of pro-mining San Juan province who was a voter of the deal that passed:

"Mining will continue without the export tax because it implied raised judicial insecurity, which I believe is the most complicated condiment we can show to international investors".