NEWS

By Jovee Marie dela Cruz

THE House Committee on Ways and Means is drafting a bill imposing an additional 3-percent tax on the mining industry, a leader of the lower chamber said on Sunday.

Albay Rep. Joey Sarte Salceda of Albay said the bill will ensure that the government and the people get their fair and rightful share in the profits from mining operations in the country.

This bill is listed among the priority measure of the Duterte administration and the House of Representatives. “I am proposing to increase by 1 percent or from 4 percent to 5 percent the excise tax on mining,” Salceda said.

Currently, Salceda said mining operations are taxed 4 percent.

Salceda said the proposal will also include the creation of sovereign wealth fund, which will come from a 2-percent tax that will be imposed on the mining industry.

“In essence, [we’ll have an] additional 3 percent [excise tax for mining industry],” said Salceda.

According to Salceda, the future generation must benefit from depletable resources or non-repeated resources of the nation.

The 18th Congress envisions the bill as setting up the updated fiscal regime for the mining industry.

House Ways and Means Senior Vice Chairman Estrellita Suansing, who was also the principal author of the bill during the 17th Congress, stressed the need to create a rationalized and single fiscal regime applicable to all mineral agreements to promote fairness.

“This aims to level the playing field, so to speak, considering that under the current taxation setup, only mining contractors inside the mineral reservations pay the royalty tax,” said Suansing.

Suansing said the bill proposes an equitable imposition of royalty on mining operations within and outside mineral reservations, whether small or large scale.

The present law requires payment of royalty fees only in mining sites declared as mineral reservations.

The bill seeks to reduce the royalty rate of 5 percent to 3 percent for mining contractors within a mineral reservation.

Also, Rep. Johnny Ty Pimentel of Surigao del Sur has requested the Department of Finance and the ways and means committee to consider the position of the mining sector, as they significantly contribute to the economy of the Philippines.

Source: Business Mirror