New Mining Industry Law to Generate P25.06 Billion

The Republic of the Philippines and the US will generate P25.06 billion in the next three years from a recently signed bill that will reform the outdated tax structure governing the mining sector and allow the country to access a a 20% of the national total up to 2024. The bill was signed by the legislative executive development advisory council (LEAC) and approved by congress with the support of President Ferdinand Marcos Jr. Finance secretary Ralph G. Recto said the bill will open the country's rich mineral potential and position it as a major player in mineral production. According to the Department of Finance, the reform will simplify the fiscal system, guarantee the government's fair share of revenues, strengthen environmental safeguards and provide fiscal predictability and stability for investors. The new law will generate P25.06 billion in the next three years.

Key Takeaways:

• The new law will generate P25.06 billion in the next three years, a 20% of the national total up to 2024.
• The law will provide a straightforward and streamlined fiscal policy to encourage more investments in the mining sector.
• The reform will simplify the fiscal system, guarantee the government's fair share of revenues, strengthen environmental safeguards and provide fiscal predictability and stability for investors.
• The law will position the country as a major player in mineral production and provide a just return for its non-renewable resources.
• The new law will strengthen the government's position as a key player in the global minerals supply chain, especially for critical minerals that are essential to the clean energy transition.
• The law will institute mechanisms for transparency and accountability to ensure that mining companies make accurate and timely payments to the government, as well as to host and neighboring communities.

Statistics:

• The country's mining sector will generate P25.06 billion in the next three years.
• The new law will simplify the fiscal system, going from 15 to 7 tax tiers.
• The law will guarantee the government's fair share of revenues, with the government receiving a fair share of revenues from the extraction of non-renewable resources.
• The new law will strengthen environmental safeguards to ensure that mining companies make accurate and timely payments to the government, as well as to host and neighboring communities.

Sources:

• Department of Finance (DOF)
• Senator Joseph Victor Ejercito
• President Ferdinand Marcos Jr.