Tax Reforms in Hydrocarbons and Mining in Chile, Colombia and Peru 2021–2023

Abstract

The objective of this chapter is to analyse the impact of recent tax reforms implemented by newly elected governments in Chile, Colombia and Peru, with special emphasis on the extractive industries. We focus on the need to improve the domestic capacity of tax and other revenue collection if the United Nations Sustainable Development Goals are to be achieved.Tax reform projects are an important tool for natural-resource-rich countries as they allow them to promote tax progressivity by levying wealth and capital income, as stated at the First Latin American Summit for an Inclusive, Sustainable and Equitable Global Tax Order, held in Cartagena, Colombia in July 2023.This chapter analyses the results of the various policies, the difficulties encountered, the need to reach a consensus for tax reforms to be approved, the link between tax reforms and international proposals, and the extent of the changes needed to increase tax collection in order to meet outstanding social and environmental challenges.