After extensive negotiations, miners and government officials have reached a consensus on the structure of a proposed windfall profit tax for the mining sector, which could bridge the approval of the long-awaited mining fiscal regime.
In a recent report by The Philippine Star, Ronald Recidoro, the Executive Director of the Chamber of Mines of the Philippines (COMP), revealed that mining companies and the Department of Finance (DOF) have mutually agreed on a tiering system, consisting of approximately five tiers.
This adjustment represents a slight modification from the DOF’s initial proposal of four tiers.
Recidoro said that they had come to an agreement with the DOF which states that higher tax rates will be imposed as the profit margin increases. Both parties believe that this tiered approach is fair and competitive when compared to other countries.
The COMP is optimistic that the proposed bill will be passed into law before President Marcos Jr.’s State of the Nation Address, preferably in the first half of the year.
He mentioned that the approval process for the mining fiscal regime is expected to be smooth, as there is no major opposition to the measure.
COMP Chairman Michael Toledo emphasized that the revisions to the windfall profit tax proposal are not minor adjustments, as they entail a considerable percentage difference in the imposed tax.
Toledo expressed confidence that the agreement reached between the industry and government officials over the finer details of the mining fiscal regime would provide much-needed clarity to investors regarding the country’s mining policies.
Marcos Jr. has previously highlighted the rationalization of the country’s mining fiscal regime as a priority measure, further underscoring the significance of this agreement.
