AngMinero
  • Home
  • News
  • Features
  • Business
No Result
View All Result
AngMinero
  • Home
  • News
  • Features
  • Business
No Result
View All Result
AngMinero
No Result
View All Result
Home Business

COMP: Higher taxes will hinder development of mining sector

AngMinero News by AngMinero News
September 18, 2023
in Business, News
28 0
0
Miners looking for policy direction from presidential bets
84
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Having higher taxes in the mining industry, especially those operating outside mineral reservation (MR) could affect the government’s push to develop the country’s mining industry, the Chamber of Mines of the Philippines (COMP) said.

In a study by the government, it was revealed that the current tax regime is “regressive” and not “competitive.”

Currently, industry investors are holding off until the challenges brought by potential increased taxes are addressed.

COMP said that imposing more taxes based on mining companies’ revenue could hinder the development of the country’s indigenous mineral resources, including the “green metals” that are critical to the planned energy transition and green economy.

The organization comprising the large-scale metallic minerals development sector also mentioned that the government’s aim to develop downstream processing and engage in the minerals value chain might not happen.

According to COMP, the excise tax doubly increased due to the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Adding to this is applying local business tax and royalties to indigenous peoples once they operate within their ancestral domains, all of which are based on their respective gross revenues.

An additional royalty rate of five percent also applies to those operating inside the MRs.

COMP advocates for an income-based royalty, incorporating increasing tax rates at rising operating margins. They added that this decisive action is also being conducted in other nations such as Chile, Peru, and Canada.

COMP further explained that the proposed taxation system is indeed an example of a progressive tax.

To encourage investment opportunities, a two percent decrease in the royalty rate is proposed for those operating in MRs. Equalizing the tax structure is also eyed to lure large and responsible mining companies.

Earlier in a DENR-commissioned study, Deloitte Financial Advisory Services said that all three existing mining fiscal systems, referring to those implemented on mining activities undertaken in the Mineral Production Sharing Agreement (MPSA), were regressive, mainly driven by a significant number of taxes on gross sales revenue or market value.

Meanwhile, the International Monetary Fund (IMF) Fiscal Affairs Department stated that the current FTAA regime is lacking in international competitiveness.

Tags: denrdepartment of environment and natural resourcesdepartment of financedofmining sectormining tax regimerevenue taxes

Related Posts

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment
News

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

June 24, 2025
Masbate Mine Solar Shift to Save PHP 150M, Cut 8,500 Tons of CO₂ Annually
News

Masbate Mine Solar Shift to Save PHP 150M, Cut 8,500 Tons of CO₂ Annually

June 23, 2025
DMC Ensures Responsible Mining and Tree Replanting in Cagayan Valley
News

DMC Ensures Responsible Mining and Tree Replanting in Cagayan Valley

June 17, 2025
Lepanto Net Income Soars to PHP659 Million on Gold Output Growth, High Prices
News

Lepanto Net Income Soars to PHP659 Million on Gold Output Growth, High Prices

June 17, 2025
OGPI Strengthens Local Ties with PHP48.5M Remittance to Nueva Vizcaya
News

OceanaGold Allocates PHP280 Million for Exploration in Didipio Area

June 17, 2025
PNIA seeks to join int’l industry group
News

PNIA Welcomes Removal of Ore Export Ban in Final Mining Fiscal Reform Bill

June 17, 2025

FEATURED POST

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

June 24, 2025
SMPC Earns Gold in FinanceAsia Awards for Outstanding Corporate Governance and Management

SMPC Earns Gold in FinanceAsia Awards for Outstanding Corporate Governance and Management

June 23, 2025
Responsible Mining Pays Off: Apex Mining Wins Regional Bronze for Best-Managed Company

Responsible Mining Pays Off: Apex Mining Wins Regional Bronze for Best-Managed Company

June 23, 2025
Masbate Mine Solar Shift to Save PHP 150M, Cut 8,500 Tons of CO₂ Annually

Masbate Mine Solar Shift to Save PHP 150M, Cut 8,500 Tons of CO₂ Annually

June 23, 2025

EDITOR PICK'S

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

June 24, 2025

SMPC Earns Gold in FinanceAsia Awards for Outstanding Corporate Governance and Management

June 23, 2025

Responsible Mining Pays Off: Apex Mining Wins Regional Bronze for Best-Managed Company

June 23, 2025

Masbate Mine Solar Shift to Save PHP 150M, Cut 8,500 Tons of CO₂ Annually

June 23, 2025

DMC Ensures Responsible Mining and Tree Replanting in Cagayan Valley

June 17, 2025

Lepanto Net Income Soars to PHP659 Million on Gold Output Growth, High Prices

June 17, 2025

OceanaGold Allocates PHP280 Million for Exploration in Didipio Area

June 17, 2025

Recent News

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

Cagayan Valley DENR Chief Commends Mining Firms for Reforestation Investment

June 24, 2025
SMPC Earns Gold in FinanceAsia Awards for Outstanding Corporate Governance and Management

SMPC Earns Gold in FinanceAsia Awards for Outstanding Corporate Governance and Management

June 23, 2025

Category

  • Business
  • Features
  • News
  • Uncategorized

Follow us

  • Setup menu at Appearance » Menus and assign menu to Footer Navigation

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In