Home Business Producer states want flat 4% royalties for iron

Producer states want flat 4% royalties for iron

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Congress currently  debates a Provisional Measure presented by the Executive, proposing that iron ore royalties increase in tandem with its international price , gradually growing from 2% – when price is less than US$60 a tonne – up to 4%, when   price rises over $100 a tonne.

But producer states are not satisfied with such graduation, and want a flat 4% royalty. That proposal was presented by deputy Marcos Pestana, from Minas Gerais and rapporter of the Provisional Measure in the House of Representatives. Congressmen from the states of Rio de Janeiro and Maranhao are also supporting the flat tax, instead of the floating system proposed by the Federal Government.