Peru’s Congress rejects government plan to raise mining taxes

LIMA, Dec 16 (Reuters) – Peru’s opposition-dominated Congress rejected the possibility of raising mining taxes on Friday after giving the government of leftist President Pedro Castillo limited legislative powers to carry out tax reform.

The result is a blow to the administration of Castillo, who took office in July and has said that raising taxes on miners is the cornerstone of his agenda to finance more social spending.

The request to empower the Government towards a tax reform in the financial sector and other economic reactivation, was approved by the unicameral Congress by 96 votes in favor, 18 against and one abstention.

The unicameral Congress’ decision comes as the world’s second largest copper producer faces a wave of anti-mining protests, which have led to the suspension of operations at China’s MMG’s Las Bambas mine. (Report by Marco Aquino, Edited by Manuel Farías)

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