Brazilian president Michel Temer has allowed the Brazilian congress to change the iron ore royalty tax rate local miners pay the government.
Initially, policymakers agreed to set a 4 percent iron ore royalty tax rate in a bill that is being proposed, but a congressional commission discussing the matter agreed to reduce the rate to 3 percent.
The iron ore royalty tax rate is currently at 2 percent.
Brazilian policy makers in congress have proposed different methodologies to set the iron ore royalty tax rate.
Initial discussions proposed the rate to be 4 percent. Then, policy makers said it could vary from 2 to 4 percent, depending on the commodity’s price in the international market. More recently, politicians discussing the bill proposed it to be 4 percent for most cases, and 2 percent for the smaller miners in some specific cases.