Mexico’s senate approved by 73 votes to 50 the broad outline of a package of tax reforms, which included a debated 7.5% charge on resource companies and as much as 8% for gold, silver and platinum.
The lawmakers, however, decided to set aside scores of divisive sections to be processed later.
Members of the National Action Party (PAN), the main opposition party, expressed their discontent with the decision by abandoning the session as the senate began to work through the reservations, reports CNN Mexico.
They claim the taxes will see investment in the country’s mining sector drop off dramatically, with major companies such as Canada’s Goldcorp TSX:G and Grupo Mexico warning they may need to take their money somewhere else.
Despite the senate tensions, the tax package was expected to be finalized later October 30 or at some point October 31. Following senate approval the reforms only need to be enacted by President Enrique Peña Nieto to become law.
About 334,000 people work in Mexico’s mining sector and more than two million are indirectly employed by it, which makes it the country’s fourth-largest industry in dollar income, only behind cars, oil and electronics.
Reprinted by permission of MINING.com