During a visit to San Juan today, President Macri announced the elimination of export taxes on mining.
The decree, signed yesterday by Energy Minister Juan José Aranguren, officially revoked the 5% tax on mining exports. This is expected to shield an increase of 5% in profits and a decrease of 8% in costs for mining companies in Argentina, and will mean an annual loss of US$223m in tax revenue for the state.
President Macri announced the removal of export taxes on mining in the province of San Juan (photo courtesy of Casa Rosada)
Jaime Bergé, head of San Juan’s Mining Chamber, praised the announcement, saying that the elimination of the tax will lead “to more employment and growth in the sector.”
The recently elected president criticised the policies of previous governments, saying that the rules under which mining developed in Argentina had been “violated ten years ago by putting taxes on mining exports, taking resources from the province of San Juan and giving them to the federal government.”
According to the president, the lower costs associated with the elimination of the tax will allow Argentine mining provinces to compete with other countries in the region. Argentine mines produce aluminium, lead, copper, zinc, silver, and gold.
Despite the move which favoured mining companies, Macri vowed to keep environmental concerns at the forefront of his government. “We are going to work with the governors to develop new mining projects, always putting the environment first,” the president said at the announcement ceremony in San Juan.
While he also admitted that the elimination of the tax would mean US$223m in lost tax revenue annually, President Macri said the decision “is in line with generating the stability, confidence, and predictability that will attract investors.”
The president recently attended the World Economic Forum (WEF) in Davos, Switzerland, during which he sought to re-instill confidence in global investors.
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