The mining industry is amendable on the planned higher taxes for the sector provided that it won’t result in their shutdown or hinder top global mining companies from investing in the country.
In a report by the Manila Bulletin, Chamber of Mines of the Philippines (COMP) president Mike Toledo, confirmed that the Philippines’ Finance Secretary Benjamin E. Diokno is reviewing the revenue sharing scheme between the government and mining firms, with support from the Trade and Industry Secretary Alfredo E. Pascual and the Socio-Economic Planning Secretary Arsenio Balisacan.
The Environment and Natural Resources Secretary Maria Antonia Yulo Loyzaga also said that the agency’s decision will be data and science-based.
According to Toledo, Diokno’s proposal, which is currently under review from the private sector, recognizes the significance of the mining industry as a major source of revenue. He emphasized the need for more government revenue for projects where financing has been hampered by economic difficulties following huge debt from the COVID-19 pandemic.
Toledo stated that the current taxes in the industry, including the four percent excise tax and royalty, are already high.
Thus, he stressed that the industry is negotiating for a” just and fair” increase in tax rates that won’t drive them out of business. He expressed his hope that the new tax rates will be balanced for both the government and industry.
The increase in mining taxes comes at a time when the country is attracting interest from top mining companies, particularly in the nickel and copper mining industries.
Despite facing challenges such as policy flip-flopping and strong opposition to mining, Toledo is optimistic about the Philippines’ potential as a major nickel supplier, as demand for nickel is increasing with the shift to renewable energy that propels the demand for electric vehicles (EV).
This results in an increase in the number of mining companies entering the nickel market, as nickel is a key component in EV batteries, he said.
Therefore, Toledo emphasized the need for a greater volume of nickel processing in the country, in addition to the current operators, and incentives for investors to help overcome the high cost of power.
