Multinational mining companies owe Colombia $224M in overdue royalties, taxes

Multinational mining companies like Drummond and Cerromatoso owe the Colombian state millions of dollars in overdue taxes and royalties, said the country’s Comptroller General’s Office Tuesday.

“Colombia does not do a very good job of collecting taxes for the extraction of natural resources.” former congresman and mining consultant  Acosta told economic magazine Portafolio. “It is inconceivable that while in La pay a 12 percent  tax on mined salt, the multinational , which seeks to exploit gold in Colombia, only pays 4 per cent in royalties for the most precious minerals,” Acosta added.

Mining companies in Colombia have historically benefited from tax subsidies. According to Acosta, Colombia received $3.6 billion in direct royalties in 2009. According to Portafolio, Colombia, despite its natural resources, receives the least income through taxes and royalties in Latin America.

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