Chile Congress Risks Investor Ire With Tax and Pension Bills (1)

Chile’s congress is debating proposals that could force mining companies and wealthy individuals to pay more taxes, raising red flags for investors as the nation nears the rewrite of its constitution.

The lower house floor on Wednesday backed legislation that would create a new royalty on copper and lithium sales, while a committee will discuss proposals for another round of early pension fund withdrawals and a wealth tax this week. All of the bills face significant legal hurdles to becoming law, though the pandemic and pressure for social spending have given them impetus.

Stockpiles of lithium carbonate sit at a Sociedad Química y Minera de Chile (SQM) lithium mine on the Atacama salt flat in the Atacama Desert, Chile

Photographer: Cristobal Olivares/Bloomberg

Financial markets are paying extra attention ...