Marcos urges lawmakers to push for simplified fiscal regime in mining

President Ferdinand ''Bongbong'' Marcos Jr. on Wednesday urged lawmakers to push for a simplified fiscal regime for the country's mining industry.

The President was referring to the Rationalization of the Mining Fiscal Regime, which he deemed “fundamental to creating a fair and equitable mining environment for everyone involved.”

“I urge all our dedicated agencies and esteemed members of Congress to support the Rationalization of the Mining Fiscal Regime,” Marcos said during the 2023 Presidential Mineral Industry Environmental Award  (PMIEA) at the Malacañang Palace.

According to the Presidential Communications Office, the bill proposes a revised fiscal regime, imposing a four-tier, margin-based royalty ranging from 1.5% to 5% on income from mining operations outside of mineral reservations.

The PCO said under the current fiscal regime, the obligations of mining groups and companies vary depending on the mining agreement. The present fiscal regime also imposes taxes only for mines operating within a mineral reservation.

Further, Marcos also ordered the Department of Environment and Natural Resources (DENR) to strengthen its regulatory capabilities when it comes to the mining industry.

"It is equally vital for the DENR to strengthen regulatory capabilities for all mining operations  to ensure compliance with safety and environmental standards,” Marcos said.

The President mentioned the issuance of Administrative Order No. 2022-04, mandating biodiversity management in mining operations along with the establishment of the National Environment and Natural Resources Geospatial Database. 

At a separate press briefing, DENR Secretary Ma. Antonia Yulo-Loyzaga was asked about imposing margin-based royalties and windfall profit tax on mining companies or the proposed rationalization of the mining fiscal regime.

She said, ''We fully support the DOF's position, and so we don't differ from anything that they have already put forward in terms of the fiscal policy.'' —KBK/VBL, GMA Integrated News