Mining investment prospects in Mexico drop four places in terms of attractiveness
Mexico dropped from 38th to 42nd position in attracting mining investment, due to changes in the country's policies, revealed the Fraser Institute of Canada, which measures the interest of companies in investing in the extractive sector. In its yearbook of the industry worldwide, the research center highlighted that the country lost positions due to changes in its policies with the industry, although it rose in the use of best practices.
In this regard, Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated in a recent conference that the tax burden is one of the main issues that makes the sector less attractive in Mexico. He added that during 2020 the mining industry in Mexico paid 30 thousand 374 million pesos in taxes, a figure 1.2 percent higher than that recorded a year earlier, despite the fact that the pandemic halted operations between April and May.
During his participation in the forum 'Contribution of mining: beyond the numbers', the also CEO of Industrias Peñoles highlighted that those who say that the industry pays little are myths, since around 10.6 percent of the GDP generated by the industry is destined to the payment of taxes, higher than the 7.6 percent of the manufacturing industry, or the 6.1 percent of the electricity sector.
"Mining can be an essential element in the economic reactivation of the country, it only requires a State policy that provides certainty (...) There are those who think that, for ideological reasons or for particular interests, as long as a lie is repeated many times (how to pay less taxes or not to pay them) it will end up being accepted as truth", he pointed out. He broke down that, of the total taxes paid, 24 thousand 205 million pesos are for ISR, while 2 thousand 576 million are in surface duties and 3 thousand 593 million in new duties.