By Marco Aquino
LIMA, Oct 27 (Reuters) - Peru's leftist government onWednesday asked Congress for authorization to overhaul thecountry's tax code with a focus on raising taxes on the miningsector, funds the administration wants to use on socialprograms.
The government wants to "perfect the mining sector's fiscalregime," according to a copy of the document filed withCongress. Specifically, the government wants to revise rates onroyalties, income tax, and the so-called "special tax" thatcomes into effect when metal prices soar.
Socialist President Pedro Castillo has made lifting taxes onminers a cornerstone of his fledging administration. Peru is theworld's No. 2 copper producer and mining is an important sourceof tax revenue.
The request did not specify how much those taxes would belifted.
Finance minister Pedro Francke previously said that theInternational Monetary Fund is advising Peru on how to raisetaxes on the mining sector without affecting itscompetitiveness.
Peru has one of the lowest tax-to-GDP ratios in LatinAmerica, according to the Organisation for Economic Co-operationand Development.
It remains unclear when Peru's opposition-controlledCongress will consider the tax reform proposal, and to whatextent it would support it.
Peru has a pipeline of about $50 billion in future mininginvestments, according to the mining ministry, and ensuring therealization of new projects while imposing higher taxes is a keychallenge for the Castillo administration.
Some of the world's largest mining firms operate in Peru,including Freeport McMoRan , Glencore , NewmontCorp , Barrick Gold and Southern Copper .
Still, several miners would be exempt from the core of thetax reform because they have in the past signed tax stabilityagreements to shield them from this kind of scenario.
Those miners include MMG LTd , Aluminum Corp and Anglo American , whose Quellaveco mine isonly scheduled to start production next year.