By Adrian H. Halili, Reporter
THE SENATE is looking at giving miners a longer grace period before they are barred from exporting raw ores under a proposed Mining Fiscal Regime law, a senator said.
“This will depend on the bicameral conference committee, but we are looking to extend the time a little,” Senator Joseph Victor G. Ejercito, who sponsored the bill in plenary, told BusinessWorld in mixed Filipino and English. “Five years is too short.”
Senate Bill No. 2826 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining bill, which the Senate approved on third reading on Feb. 3, includes a clause that bans the export of raw ores to encourage local miners to set up processing plants in the Philippines. They have five years to build these before the ban is enforced.
The House of Representatives version of the bill does not have a similar provision.
Senators are seeking a five-tier margin-based royalty system ranging from 1% to 5% and a windfall profit tax system ranging from 1% to 10%.
The House version proposes an eight-tier margin-based royalty regime ranging from 1.5% to 5% and a 10-tier windfall profit tax system ranging from 1% to 10%.
Mining companies now pay corporate income tax, excise tax, royalty, local business tax, real property tax and fees to indigenous communities.
House ways and means committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda earlier said the bicameral conference committee might meet after the congressional break in June. Congress is on a four-month recess for midterm elections. He has also proposed an export tax on raw ore instead of an outright ban.
Mr. Ejercito said he would not support more taxes on ore exports. “It might be a double whammy if we implement an export tax. Maybe no one will invest in mining, and we might just kill the industry.”
The Chamber of Mines of the Philippines earlier said the export ban could lead to the closure of mining operations and increased joblessness.
The value of metallic mineral production rose 3.17% to P195.92 billion in the first nine months of 2024 from a year earlier, according to data from the Mines and Geosciences Bureau.
