Marcos Jr. may add VAT on partially-processed ore

President-elect Ferdinand “Bongbong” Marcos Jr. is considering adding value-added tax (VAT) on exports of partially processed ore instead of imposing an increase in mining tax.

In a press briefing, Marcos Jr. said that instead of exporting raw ore, the partially-processed ore will be exported “so that there may be VAT that’s left in the Philippines.”

This is in response when asked if the upcoming administration would pursue increasing ming taxes. Marcos Jr., however, said that they have yet to decide on the fiscal measures needed.

The president-elect is also pushing for “clean mining” in the country, saying that he is in disbelief that the Philippines cannot monitor and regulate the mining industry sufficiently.

Over a week ago, the National Economic and Development Authority (NEDA) said that only four out of the 45 mining firms it reviewed received excellent remarks, while the rest needed major or minor reforms in terms of socio-economic development and environmental protection.

Marcos Jr. said the government has to ensure that the mining practices in the country are “environmentally neutral.”

During the campaign period, Marcos Jr. said that mining is a “valuable source of revenue for the government.” He, however, expressed concerns about open-pit mining as it is “very difficult to control.”

In December 2021, the government lifted its four-year ban on open-pit mining amid efforts on economic recovery following the COVID-19 pandemic and the onslaught of Typhoon Odette.

(Photo from the Philippine News Agency)