By Justine Irish D. Tabile, Reporter
CLARITY on the provisions of the mining fiscal regime is expected to attract more investment in mineral processing, the Chamber of Mines of the Philippines (CoMP) said.
On the sidelines of the 13th Arangkada Philippines Forum, CoMP Chairman Michael T. Toledo said investors have cited unstable regulation and the uncertain fiscal regime as behind their reluctance to invest in the Philippines.
“The first thing that they say always will be ‘The problem with mining is that your laws always change and then your fiscal regime is unclear and there seems to be no transparency or flip-flopping of policies’ … So those are the reasons why they have been very hesitant,†Mr. Toledo said.
However, he said this will be addressed once the government signs into law the proposed fiscal regime for the mining industry.
At the same event, Senate President Francis G. Escudero said Congress is hoping to pass the measure in the remaining 41 session days until June 30, 2025.
“This was passed in the Lower House months before, so now it’s pending in the Senate. And we are hoping that it will be passed, and it will be the first time that we will have in place a mining fiscal regime bill that will actually govern the industry,†Mr. Toledo said.
“With a law clearly defining and governing the rights of all those into the industry, government, the mining operators, and the other related government agencies and other stakeholders, it will attract more investment,†he added.
He said that the passage of the bill will help ensure transparency and predictability, which will allow investors to make long-term plans.
The House of Representatives approved its version of the measure in September last year, while the bill is awaiting second reading at the Senate.
Senate Bill No. 2826 aims to establish a five-tier margin-based royalty rate range of 1-5% and a five-tier windfall profit tax range of 1-10%.
Meanwhile, House Bill No. 8937 aims to charge large-scale miners 4% of their gross output and to set up a margin-based royalty range of 1.5–5% with eight tiers and a 1–10% windfall profit tax with 10 tiers.
According to Mr. Toledo, the Senate’s version of the bill incorporates input from the CoMP, the Department of Finance, the Anti-Red Tape Authority, the Department of Trade and Industry, and other stakeholders.
“The technical working group hearings were very exhaustive … because we really want this bill to be passed because if not, it might be hard to get another bill on mining,†he said.
“This is only what businessmen from overseas are waiting for before they invest billions of dollars here so they can help the industry … Mining can do many things as long as it is responsible and sustainable,†he added.
Aside from pushing for the passage of a mining fiscal regime, Mr. Toledo said that the industry is also seeking local ordinances to not go against the laws passed by the Congress.
“Why are we allowing a local ordinance issued by a local government, for example, to ban mining or ban a certain methodology of mining, like open-pit mining, when there is a law that states that it is allowed? Isn’t that a violation of the law?†he said.
“If you are a local government official, you are supposed to execute the laws that were passed by Congress, who is tasked under the Constitution to pass laws and to legislate, and the Supreme Court and the courts to interpret the law,†he added.
