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 News

Mining industry advocating for a margin-based royalty bill

AngMinero News by AngMinero News
July 11, 2023
in News
28 0
0
Mining, fossil fuels banned from green financing schemes

Find a treasure. Gold bars in the earth. Wealth. Bowels of the earth, the concept of the gold mine. Cash resources and reserves.

84
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

The mining industry is advocating for the imposition of a margin-based royalty and windfall profit tax, as it would allow the government to generate income while mitigating the challenges faced by miners.

In a report by the Business World, the Vice Chairman of the Chamber of Mines of the Philippines, Gerard H. Brimo, revealed that these taxes would enable the government to acquire a larger portion of mining revenues during times of commodity price escalation, while also granting the industry time to recuperate during periods of low prices.

In order to increase government revenue, the Department of Finance (DOF) is urging Congress to provide top priority to a bill that would rationalize the fiscal rules for the mining industry.

Brimo also mentioned that the sector is in favor of House Bill No. 373 which calls for a margin-based royalty on industrial-scale miners operating outside of mineral reservations. Authored by Albay Representative and House Ways and Means Committee Chairman, Jose Maria Clemente S. Salceda, it also suggests a windfall profit tax that is similarly dependent on margins.

By basing the tax on margins, the rate of taxation arises in connection with the increase in operating margins.

Brimo added that margin-based royalties are also seen in other nations like Peru and Chile, which have been successful in luring significant investments to expand their industries.

Currently, the suggested new mining fiscal system is being examined by the House Committee on Ways and Means.

The most recent iteration of the bill outlines that large-scale miners operating within reservations will face a 5% royalty on the market value of their gross output as a requirement.

Meanwhile, the rates for large-scale miners outside mineral reservations will be subject to margin-based royalty on income from their operations. For miners with a margin ranging from 1% to 10%, they will be obligated to pay a royalty of 1%. Meanwhile, miners with a margin surpassing 10% to 20% will be required to pay a higher royalty rate of 1.5%.

Small-scale miners, however, will be required to pay a royalty equal to 2% of the market value of their gross output.

A windfall profits tax depending on their operating income is another proposal in the bill. For instance, a fee of 0.5% will be charged to those having margins of more than 35% and up to 40%.

The Finance department further suggested levying a 3% royalty on the market value of the gross production of large-scale mining activities outside mineral reservations in a meeting of the House Ways and Means Committee.

Tags: department of financedofHouse Bill No. 373margin-based royaltywindfall profit tax

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