The Chamber of Mines of the Philippines (CoMP) says that proposed clarity on the mining fiscal regime could enhance investment entry in the country’s mineral processing sector.
In a report by Business World, CoMP Chairman Michael T. Toledo reported that investors often cite inconsistent regulations and an unclear fiscal framework as significant deterrents to investing in the country.
He added that the situation is expected to improve once the government enacts the proposed fiscal regime for the mining sector, further stating that the enactment of the bill would promote transparency and stability, enabling investors to plan for the long term.
Toledo also said that the measure had previously passed in the House of Representatives and is now pending in the Senate, with hopes that it will soon establish a formal fiscal regime for the industry.
Meanwhile, Senate President Francis G. Escudero stated that Congress aims to pass the legislation within the 41 remaining session days until June 30, 2025.
Senate Bill No. 2826 proposes a five-tier margin-based royalty rate ranging from 1% to 5% and a windfall profit tax of 1% to 10%.
House Bill No. 8937 suggests a 4% charge on large-scale miners based on their gross output, with a margin-based royalty structure of 1.5% to 5% and a 1% to 10% windfall profit tax with ten tiers.
The House version of the bill was approved in September last year and is currently awaiting a second reading in the Senate.
Toledo mentioned that the Senate bill incorporates feedback from CoMP, the Department of Finance, the Anti-Red Tape Authority, the Department of Trade and Industry, and other stakeholders.
