LIMA, Reuters – Peru’s finance minister said that the International Monetary Fund has concluded that there is room in Peru’s fiscal system to reform it so as to increase taxes on its key mining sectors.

Peru is No. Peru is the No. 2 producer. Hiking mining taxes is an important part of socialist President Pedro Castillo’s agenda to increase resources for social programs.

The finance ministry stated that Peru’s tax system was internationally competitive and has a lower tax burden than other countries with similar resources.

It added that “In this sense, (the IMF) states that within that system there is leeway for increasing progressive (taxation).”

This report was not made public, and the IMF did not comment.

Peru’s finance minister Pedro Francke asked Congress to grant him executive power to overhaul the tax system. The request is mainly focused on the mining industry and has not been voted on by Congress.

But, the government is yet to detail the specifics of the planned tax rise on the mining sector. Francke claimed earlier this year that the IMF had been enlisted by Francke to help him in order not to hurt competition.

According to the mining industry, opposition has been voiced. They claim that Peru is already taxed at a high level and further increases could harm their competitiveness.