Congress urged to pass measure imposing margin-based taxes, royalties for mining firms

MANILA, Philippines — President Ferdinand Marcos Jr. urged Congress on Wednesday, October 16, to pass the proposed legislation rationalizing the taxation and revenue collection from mining operations in the country. 

Marcos said the Rationalization and Mining Fiscal Regime will create a “fair and equitable mining environment.” 

The president also mentioned the country’s need to produce sufficient minerals to develop technology that will support the national transition to renewable energy. 

“As we look ahead, I urge all our dedicated agencies and esteemed members of Congress to support the Rationalization of the Mining Fiscal Regime,” he said. 

At a press briefing on Wednesday, Environment Secretary Maria Antonia Yulo-Loyzaga said the collected revenue from mining companies is used to fund social development and management programs as a way to give back. 

Asked about its contribution to the country’s gross domestic product growth, Loyzaga said the mining sector accounts for 0.5% as of 2023.  

At the House of Representatives, the proposed legislation is House Bill 8937, which seeks to amend the National Internal Revenue Code of 1997. The lower chamber passed the bill in September 2023. 

Problems with the measure. However, environmental advocates and think tanks are opposing this measure as the proposed tax on mining operations is too low in comparison to the damage it leaves to communities and biodiversity. 

"While it may be seen as a positive move towards increasing government revenues from the mining sector, there is really no price tag on the immeasurable and inter-generational ecosystem, socio-economic, and cultural impacts of mining operations, especially on affected communities," Environmental Defenders Congress spokesperson Eco Dangla told Philstar.com in a message.  

In a webinar on October 7, the Center for Energy, Ecology, and Development (CEED) revealed the Philippines does not need to increase mining activities to meet the demands of the renewable energy transition, as current data shows that the annual production of transition metals is already sufficient. 

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