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Uniform 5% royalty on mining in Philippines pushed

Mining News - Published on Fri, 15 Mar 2019

Image Source: Inquirer Business -
Inquirer Net reported that the Department of Finance is asking the Senate to retain its proposed uniform 5-percent royalty rate for all mining operations under its proposed tax reform package “2 plus.” Finance Assistant Secretary Maria Teresa S Habitan said the DOF’s original proposal would generate an additional P7.2 billion in revenues, almost double the P3.7 billion to be collected from the bill approved by the Lower House last year. The DOF proposal was contained in Senate Bill No. 1979 authored by Senate President Vicente Sotto III.

Habitan said that “The DOF prefers a rationalized and single fiscal regime for the mining industry to make this sector’s tax system simpler, more equitable and more efficient, in line with the overriding goal of the Duterte administration’s comprehensive tax reform program.”

On the other hand, the House version of the mining revenue reform bill would impose a lower royalty of 3 percent on large-scale mining inside mineral reservations; 1-5 percent of profit margins for large mines outside reservations, and 0.1 percent of gross output for small-scale mining whether inside or outside mineral reservations.

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Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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