Miners seek new tax system | Inquirer Business

Miners seek new tax system

Group says taxes should be based on profit

The Chamber of Mines of the Philippines is pushing for a progressive tax system for the mining sector that will enable the government to generate more revenue from mining.

In a statement, the industry group said that while firms in most mining destinations such as Australia and Chile were taxed on net profit, Philippine companies were paying taxes based on gross output.

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The group said it would propose a new legislation that would change the tax system for mining. It did not give details of its recommendation but the group is leaning toward the adoption of a net income-based tax system.

In the meantime, the industry group said “it appreciates the apparent care with which the government is reviewing its mining policy.”

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According to the Chamber of Mines, the mining industry holds much potential in driving economic and social development, especially with the rising prices of metals worldwide.

The group said investors were ready to put their stake in the country, and the government “only needs to maintain regulatory certainty” and ensure the proper implementation of current laws and fiscal regime.

“Our member-companies are eagerly waiting for the issuance of the executive order to enable them to pursue their mining activities that are expected to bring in more capital investments,” the industry group said.

The government is considering options for greater revenue share in mining, including the declaration of all mining areas as mineral reservations and/or the implementation of a “50-50” revenue sharing scheme with mining firms.

The Philippines aims to attract $2.27 billion in mining investments this year. This may be slashed by the third quarter if the long-awaited mining policy has not come out by then, according to government officials.

The mining policy was originally scheduled for issuance last year but the deadline was moved several times, with the latest being June 22.

Palace officials and those of the Department of Environment and Natural Resources said the mining policy was up for “minor” revisions. They maintained that the mining policy remained an “urgent matter” for the government.

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TAGS: Chamber of Mines of the Philippines, Mining and quarrying, tax system
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