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Philippines to lose investments under mining bill – CoMP

Mining News - Published on Fri, 21 Sep 2018

Image Source: chamberofmines.com.ph
Manila Times reported that the Philippines risks losing investments in the mining sector if Congress passes a proposed law that aims to impose a 5% tax on all its metal and nonmetal mines, whether they were declared as mineral reservations or not, the Chamber of Mines of the Philippines (CoMP) warned. At the sidelines of the ongoing Mining Philippines 2018 International Conference and Exhibition, CoMP Chairman Mr Gerardo Brimo told reporters that House Bill 7951, or the Mining Tax Reform Bill, would make local mining companies sufffer, could lead to a huge loss in “quality investments” and hit about 200,000 families that depend on the industry.

Mr Brimo said of the measure, filed by Rep. Estrelita B. Suansing of the First District of Nueva Ejica province on July 24, “It is a problem for new (mining) projects going forward. If that bill passes, we are not going to see investments in our mineral sector anymore from quality companies. [T]hey will not come here if the tax structure is too expensive.”

However, the proposed tax is costlier than major mining countries Australia, Canada, Chile, Peru and South Africa, according to the mining group head. The country would stand to lose “billions of invesments” under the proposed tax structure, which Brimo described as “not competitive.”

He said that HB 7951 would also lead to lost employment opportunities and social development in the country. The measure is “punishing and we are talking to legislators about what we can do about it.”

Meanwhile, the bill is part of the Duterte administration’s comprehensive tax reform program aimed at making the country’s taxation system more equitable and earn additional revenues for its massive “Build Build Build” infrastructure program. This program is seen to spend P8.44 trillion until the President’s term ends in June 2022.

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Posted By : Rabi Wangkhem on Fri, 21 Sep 2018
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