LatinNews Daily - 18 May 2023

* Chile’s lower chamber of congress has approved a bill which has already been ratified by the senate which establishes a new mining royalty tax for the exploitation of copper and lithium. The bill’s approval – by 101 votes in favour, 24 against with three abstentions - follows concessions offered by the leftist government led by President Gabriel Boric which secured its passage through the senate. These cut the top tax rate from 50% to 46.5% for companies producing over 80,000 tonnes of fine copper a year. There is also a 1% ad valorem tax on sales and a sliding scale profits tax set at 8%-26%. The changes will take effect from 2024 and are expected to raise 0.45% of GDP (equivalent to some US$1.35bn), of which US$450m will be distributed directly to promote the productive development of regions and communes across the country. The bill now goes to President Boric for promulgation.