Presidential sister and Senator Imee Marcos said that the mining industry must invest in local processing plants to maximize profits from the industry.
In a report by BusinessWorld, Marcos, who leads the Senate Economic Affairs Committee, said that the government cannot allow mining companies to just leave the Philippines after extraction activities, adding that the mining industry can invest in local processing plants and connect to existing local value chains to maximize the return to the local economy.
Over a week ago, the Ways and Means Committee of the House of Representatives approved the new fiscal regime for the mining sector, which is seen to generate Php 37.5 billion for the country.
Marcos said that any move to promote the mining sector and improve its revenue generation is crucial as the country faces a debt burden. She added that mining is a way to provide employment in the countryside.
Under the proposal, the Department of Finance 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. To encourage downstream and proper valuation of minerals, DOF is proposing a 10 percent export tax on the gross value of mineral ore.
Marcos said that while there is a need for additional government revenue, the concern is “making sure that we maximize the return to the Filipino people,” seeking clarification if the 10% mineral ore tax is considered part of the 60% government share in the net mining revenue that will be imposed in mining operations under the new fiscal regime.
Albay Rep. Jose Marie Clemente Salceda, chair of the House Ways and Means Committee, said that the 10% export tax would be part of the 60% net mining revenues, adding that “if they don’t export, then they pay the 60%.”
