Peru's mining canon —mining tax resources transferred to regions where exploitation takes place— saw a 24.4% rise in 2016 over the previous year, Economy and Finance Ministry (MEF) data revealed.
The Inca country's mining canon reached S/1.862 billion (about US$573.63 million) in 2016, S/1.397 billion (about US$430.38 million) of which goes to local governments.
The remaining S/465.67 million (about US$143.46 million) is transferred to regional governments.
According to NGO CooperAccion, such increase was driven by rebounding metal prices and the national mining industry's 21% output growth in 2016.
Mining canon explained
Mining canon represents half of the Peruvian central government's annual income tax revenue collected from this activity.
Said 50% is transferred to local and regional governments where mineral extraction —metallic and non-metallic— took place.
Mining canon resources are usually distributed in the month of July of the next year.
The mining canon is the most relevant among Peru's six canons (
mining, oil, gas, hydro-energy,
forestry and fishing) given the volume of resources distributed to mine areas.
(END) DHT/MVB