La Jornada – Mining causes more harm than good to public finances, collective complaint

The environmental and social damage caused by mining in Mexico is not compensated by the taxes they pay, because according to data from the Ministry of Finance and Public Credit, their contribution to the country’s public finances is “very little,” said Colectiva. Let’s change it Now, which called for this industry to stop being considered of “public utility” and for the tax incentives granted to it to disappear.

The group made up of representatives of towns, communities, civil organizations, academics, etc., highlighted that in 2019 the income obtained by the State from the economic activity of this sector represented just 0.13 percent of the total collection of the federal government; while in 2020 they were 0.32 percent and for 2021 0.97 percent.

In terms of specific contributions in tax matters, the income tax (ISR) contributed by mining represented 1.41 percent of the total income collected for this concept in 2019; in 2020 the sector contributed 1.37; in 2021, it was 2.86, and in the first quarter of 2022, it was 2.95 percent.

Regarding the value added tax (VAT), the amount contributed by mining has been less than 2.74 percent in 2019; minus 1.70 in 2020; minus 0.93 in 2021 and minus 1.86 percent in the first quarter of 2022.

This tax has always represented disbursements for the State. Additionally, in 2019, the report of the public account of the SHCP does not report tax revenues from the mining sector, on the contrary, it reports an outlay of one thousand 121.1 million pesos.

In every year, from 2019 to 2022, the payment of VAT from the mining sector has represented an outlay for the Mexican State, that is, for the country’s finances.

“The figures show that the mining sector contributes very little to the public finances of the country, therefore, mining is not an activity that can be considered of public utility, much less if the enormous damage it causes in the territories is taken into account. rural areas: destruction of ecosystems, violation of the rights of communities and peoples, water contamination, dispossession processes and deep ruptures in the community social fabric of the places it reaches”, the agency pointed out.

For Colectiva Cambiémosla Ya, the low contribution is the product of the lack of adjustments in the fiscal reforms already made to the mining sector to equalize the collection of taxes and duties with the growth of profits that this sector has had for more than a decade.

“The greatest fortunes are found in mining, inside and outside of Mexico. This enrichment comes at the cost of impoverishing the regions in which it operates and destroying rural livelihoods. It is essential to reverse this situation. Although today the Mexican government questions this industry and has limited the granting of new concessions, it is essential that it take decisive steps to increase its collection proportionally to its profits”, he concluded.