MANILA, Philippines - The interagency Mining Industry Coordinating Council (MICC) has approved a proposed revenue-sharing scheme for the mining industry.
Environment Secretary Ramon Paje told reporters following the MICC meeting held in the Board of Investments that the council has approved the revenue-sharing scheme.
“It has been signed by the council,†he said.
Following the approval, Trade Secretary Gregory Domingo said the draft bill for a new revenue sharing between the government and mining companies proposal will be sent to Malacañang for the proper endorsement to Congress.
“It will be submitted to Malacañang,†Domingo said.
Mines and Geosciences Bureau director Leo Jasareno told reporters that under the approved proposal, mining firms will have to remit to the government either 10 percent of the gross revenues or 55 percent of net mining revenues plus a percentage of the excess profit, whichever is higher.
“This will apply to metallic mines and for both MPSA (Mineral Production Sharing Agreement) and FTAA (Financial Technical Assistance Agreement),†he said.
Mining firms pay taxes to the government depending on their contract.
The FTAA which allows mining firms owned by a majority of foreigners to operate in the country, requires 50-50 sharing of revenues between the company and the government.
The MPSA which is given to firms owned by a majority of Filipinos meanwhile, specifies a two percent excise tax of gross sales of production, as well as regular corporate income tax, business tax and payments for indigenous people affected by the mining operations.
Firms operating in mineral reservation areas have to remit an additional five percent royalty to the government.
Executive Order (EO) 79 issued in 2012 created the MICC, a joint committee of the Economic Development Cluster and the Climate Change Cluster, tasked to draw up the new policy and draft legislation for a new mining revenue scheme.