A report by Ernst and Young has found that the coal and gold mining companies in Colombia have to pay the government up to $81 for every $100 produced, reported financial publication La Republica.
The report analyzed what would be the tax burden imposed on a new 30-year investment starting the exploration phase in 2011 in order to assess the competitiveness of the fiscal system.
According to the results, in the case of viable projects of open-pit coal mines and underground mines with coal priced at $90, the tax burden in Colombia would be between 74% and 81%.
In other words, for every $100 in profit, the Colombian government would charge $74 for an open-pit and $81 for an underground mine.
The average tax burden for the countries in the same scenario analyzed was 49% for an open-pit mine and 53% for an underground mine.
Colombia was compared with other gold and coal producing countries such as Australia, Argentina, Brazil, Canada, Chile, Indonesia, Peru and South Africa.
The report was commissioned by trade body Large-Scale Mining Sector, the Colombian Chamber of Mining and the mining division of the National Entrepreneurs Association.