MANILA, Philippines — Miners and government officials have reached a middle ground on the tiering of a proposed windfall profit tax for the mining industry that could pave the way for the approval of the long-awaited mining fiscal regime.
Ronald Recidoro, executive director of the Chamber of Mines of the Philippines (COMP), said mining firms and the Department of Finance (DOF) have “mutually agreed” on a tiering system that is acceptable to both parties.
Recidoro said the tiers would be about five, which is a “slight tweak” to the DOF’s earlier proposed regime of having four tiers.
“We are now in agreement with the DOF that when our profit margin grows then a higher tax rate would be applied,” Recidoro told reporters.
“So, they like it, we like it. We think it’s equitable and we think it’s competitive versus other countries,” Recidoro added.
He said they are hopeful that the bill would be enacted into law before the first half is over or just before the State of the Nation Address of President Marcos.
“So that the President can report the new fiscal regime as an accomplishment,” he said.
Recidoro said they expect that the approval of the mining fiscal regime would be smooth sailing already given that there is no “violent opposition” from any quarters regarding the measure.
“We think we can work with this fiscal regime,” he added.
COMP chairman Michael Toledo said the tweaks made in the windfall profit tax proposal are not just minor tweaks, as a percentage difference in levied tax is “quite substantial.”
Toledo said he is optimistic the country would finally have mining fiscal regime after the industry and the government officials reached an agreement over its fine print.
According to Toledo, the implementation of a mining fiscal regime would “cure” a lot of investors “uncertainties” regarding the country’s mining policies.
Marcos has earlier identified the rationalization of the country’s mining fiscal regime as a priority measure.