Sulliden Gold Corporation Ltd T.SUE.WT

RE: Tax Article:

[Sir_Holler]

UPDATE 1-Peru govt: mine companies to contribute $1 bln/year

Thu Aug 25, 2011 3:56pm GMT

 
    LIMA, Aug 25 (Reuters) - Peru has reached an agreement with
mining companies to increase their contributions toward the
state to 3 billion soles (about $1 billion) a year, the
country's prime minister said on Thursday.
    Prime Minister Salomon Lerner gave no details on the new
royalty rate or tax scheme agreed with miners. Companies
currently pay royalties of between 1 percent and 3 percent,
charged on sales.
    "We want to announce today that we have ensured mining
companies will make tax payments of approximately 3 billion
soles a year," Lerner told Congress, where he was presenting
new leftist President Ollanta Humala's government plan.
    "This tax will not affect investment or companies'
competitiveness," he said.
    Last year, miners contributed $646 million in royalties. It
was unclear whether Lerner was referring to revenue from
royalties alone or overall tax contributions.
    Mining and government sources said earlier this month the
two sides had agreed to apply royalties on companies' operating
profits, rather than sales.
    In his speech, Lerner also said the government would aim
for the economy to grow by at least 6 percent a year and he
reaffirmed Humala's commitment to carrying out gradual reform
to improve social programs.