Philippines' lower house passes bill overhauling mining tax system
MANILA: The Philippines' lower house on Tuesday approved a bill that overhauls the tax system for mining, which the government said will be simplified to make the industry more attractive to investors. However, with the Senate yet to pass its own mining fiscal regime bill, it will be some time before the new rules are implemented. The Philippines is one of the biggest nickel ore suppliers to top metals consumer China, and also produces copper, gold and other critical minerals. Under the bill, part of tax reform measures under President Ferdinand Marcos Jr.'s administration, large-scale metallic mining operations within mineral reservations shall be subject to a royalty rate of 4% of the gross output. Large-scale miners operating outside mineral reservations shall pay a margin-based royalty on income from mining operations. Small-scale mining operations shall be subject to a royalty rate equivalent to one-tenth of 1% of gross minerals output.
