Peru Leftist Copies Chile’s Proposal for Tax on Copper Boom – by James Attwood and Daniela Sirtori-Cortina (Yahoo Finance/Bloomberg – May 17, 2021)

(Bloomberg) — A proposal to tax Chilean copper sales at rates of as high as 75% is reverberating all the way to Peru, where the leading presidential candidate wants to impose a similar measure.

Pedro Castillo, who has vowed to nationalize a major gas field and capture more mineral profits to fund social spending, just added a tax on copper sales to his platform in a document he shared on Twitter late Sunday.

The left-wing candidate, who retains a slim lead over his rival ahead of a runoff election, joins a list of politicians from copper-mining nations looking to gain a bigger share of record-high prices to fight poverty.

In top producer Chile, the lower house of congress earlier this month passed a system of progressive taxes on copper sales in what could become one of the heaviest levies in global mining.

“Let us note that the Chilean Chamber of Deputies has already approved a new royalty whose rate reaches 75% if it exceeds $4 a pound, as is the case today,” Castillo’s Free Peru party said in the document.

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