The Department of Finance (DOF) remains hopeful that lawmakers will approve the fresh tax rates under the proposed new mining fiscal regime, as it is banking on the mining industry to contribute to the country’s economic recovery.
In a report by the Philippine Star, Finance Secretary Benjamin Diokno is optimistic about the passing of the new mining fiscal regime to achieve simplification, fair share, value-adding and good governance in the industry,
Dioko is expecting that the new regime will be approved by the lower house by the end of the year.
Senate Majority floor leader Sen. Joel Villanueva said that he is working closely with the Finance department for the passage of the bill.
The House Committee on Ways and Means earlier approved the new fiscal regime.
Under the proposal, DOF is eyeing to impose a five percent royalty rate for all large-scale mining operations and provide incremental revenues of at least Php5 billion annually. In the current setup, only those mining projects located in mineral reservation areas are subject to a royalty payment.
DOF is also pushing for a rationalized and single fiscal regime that is applicable to all large-scale metallic mines, regardless of location.
To encourage downstream and proper valuation of minerals, DOF is proposing a 10 percent export tax on the gross value of mineral ore.
