By means of Justine Irish D. Table, Reporter
CLARITY on the provisions of the mining tax regime is expected to attract more investments in mineral processing, the Chamber of Mines of the Philippines (CoMP) said.
On the sidelines of the 13e Arangkada Philippines Forum CoMP Chairman Michael T. Toledo said investors have cited unstable regulations and the uncertain fiscal regime as underlying reasons for their reluctance to invest in the Philippines.
“The first thing they’ll always say is, ‘The problem with mining is that your laws are always changing and your tax regime is unclear and there doesn’t seem to be any transparency or policy flip-flops’… So those are the reasons why they have been very hesitant,” said Mr Toledo.
However, he said this will be addressed once the government signs the proposed tax regime for the mining sector into law.
At the same event, Senate President Francis G. Escudero said Congress hopes to pass the measure in the remaining 41 legislative days until June 30, 2025.
“This was passed in the House of Representatives months earlier, so now it is in the Senate. And we hope that it will be passed, and it will be the first time that we will have a mining budget law that will actually govern the sector,” Mr Toledo said.
“With a law that clearly defines and regulates the rights of everyone in the industry, the government, the mining operators and the other related government agencies and other stakeholders, this will attract more investments,” he added.
He said the passage of the bill will help ensure transparency and predictability, allowing investors to make long-term plans.
The House of Representatives passed its version of the measure last September, while the bill is awaiting a second reading in the Senate.
Senate Bill No. 2826 aims to establish a five-tier margin-based royalty rate of 1-5% and a five-tier windfall profit tax range of 1-10%.
Meanwhile, House Bill No. 8937 aims to charge large-scale miners 4% of their gross production and establish a margin-based royalty range of 1.5-5% with eight tiers and a windfall tax of 1- 10% with 10 levels. .
According to Mr. Toledo, the Senate version of the bill includes inputs from the CoMP, the Ministry of Finance, the Anti-Administration Authority, the Ministry of Trade and Industry and other stakeholders.
“The technical working group hearings were very extensive … because we really want this bill to pass, because if it doesn’t, it may be difficult to get another bill on mining,” he said.
“This is just what business people from abroad are waiting for before investing billions of dollars here so they can help the industry… Mining can do many things as long as it is responsible and sustainable,” he added.
In addition to pushing for the adoption of a tax regime for mining, Mr. Toledo said the industry is also seeking local regulations so as not to conflict with laws passed by Congress.
“Why do we allow a local ordinance, issued by a local government, to ban mining, for example, or prohibit a particular mining method, such as open-pit mining, when there is a law that states this is allowed? Isn’t that a violation of the law?” he said.
“If you are a local government official, you are supposed to carry out the laws passed by Congress, which under the Constitution is charged with passing laws and enacting laws, and the Supreme Court and the courts to enforce the law to interpret,” he added. .