RIO DE JANEIRO, July 25 (Xinhua) -- The Brazilian government on Tuesday announced new regulations on the mining sector, including increasing mining royalties.
The rate of the CFEM tax, charged over companies which operate in the mining sector, will be increased from November. The rates vary by the ore types.
For example, the tax rate on gold mining will grow from 1 to 2 percent, while that on niobium mining will rise from 2 to 3 percent.
The tax rate on iron ore mining will vary with the international markets, with the upper limit being 4 percent. In addition, these taxes will be charged over gross income instead of net income.
The government also announced the establishment of the National Mining Agency, a new regulation agency in the mining sector to replace the National Department of Mineral Production.
According to Mines and Energy Minister Fernando Coelho Filho, these tax changes would lead to an 80-percent increase in tax collection.
The collection of the CFEM tax amounted to 1.6 billion reals last year (504 million U.S. dollars). The Brazilian government has been taking steps to increase tax collection in order to reach the fiscal target set for 2017.
In addition to changing mining taxes, the government announced a rise in fuel taxes.
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