LOCAL MINING INDUSTRY BILL GAINS GROUND
A measure that seeks to enhance the fiscal regime for the local mining industry hurdled the House of Representatives plenary debates.
House Bill No. 8937 received overwhelming affirmative votes, with four negative votes and one abstention in the plenary session.
Under the bill, four new sections — 151-A, 151-B, 151-C, and 51-D — are created under Republic Act (RA) No. 8424, also known as the National Internal Revenue Code of 1997, as amended.
No less than the Chamber of Mines of the Philippines has expressed support for the measure as it went through the legislative process in the House.
“I agree with the chamber that the fiscal changes being introduced by this bill will help the country’s post-pandemic economic recovery,” Speaker Ferdinand Martin G. Romualdez said.
Once enacted, the House-approved measure will subject large-scale metallic mining operations within mineral reservations to royalty rate of four percent of the gross output of the minerals or mineral products extracted or produced.
A margin-based royalty on income from metallic mining operations would be imposed on large-scale metallic mining operations outside mineral reservations.
Meanwhile, a royalty rate equivalent to one-tenth of one percent for small-scale metallic operations will be implemented.
The proposed statute also requires small-scale miners to register with the Mines and Geosciences Bureau and the Mining Board of the concerned local government unit (LGU) and encourage them to organize into cooperatives to qualify for the awarding of a People’s Small-Scale Mining Contract.
In addition to the taxes imposed under National Internal Revenue Code, a windfall profits tax would also be imposed for each taxable year on income from metallic mining operations.
“Through the bill, the mining industry proves itself as a key partner of the government in nation-building,” noted Romualdez, leader of the 311-member House of Representatives.
Chamber of Mines of the Philippines Executive Director Ronaldo Recidoro earlier said that HB No. 8937 would give the government a fair and increased tax take from mining while ensuring the competitiveness, attractiveness, and sustainability of the country’s mining industry.
