Executive branch approves extension of sales tax exemptions for explorers - Peru

Peru's executive branch of government has signed a law previously approved by congress to extend through 2012 sales tax reimbursements for mining companies in the exploration phase, state news agency Andina reported.

The law also exempts explorers from a certain municipal tax, and applies to companies exploring for hydrocarbons.

The energy and mines ministry, in coordination with the economics and finance ministry, now has 30 business days to update the list of goods and services that qualify for the tax exemption, the report said.

Peru snagged 5% of global mining exploration spending in 2008, which reached US$13.2bn, according to Canada's Metals Economics Group (MEG). While MEG's latest forecasts say total global exploration budgets were expected to have fallen 42% to US$8.4bn in 2009, the Fraser Institute last year ranked Peru at number 11 on its list of countries with mining potential.

 

 

 

 

Peru is a major producer of silver, gold, zinc and other metals.