CEBU, Philippines – An industry group is pushing for the passage of the bill that seeks to increase government revenue share from mining operations and simplify the tax regime in the mining sector.
Bantay Kita said that House Bill 5843 or the "Fiscal Regime for Mineral and Mineral Products and Quarry Resources" aims to impose royalty on all mining operations.
“The said bill proposes that government share from mineral extraction be raised, among others,” Bantay Kita said in a statement sent to the media.
“If the mining industry is to contribute to sustainable development like in other countries, the government should raise its collections from mining revenues," it said.
The bill, filed by Nueva Vizcaya Rep. Carlos M. Padilla last month, also aims to revise the current "complex and differentiated" fiscal regime faced by mining firms and government agencies tasked on tax administration.
"Currently tax administration is very burdensome in the large-scale metallic mining sector. A separate tax collection system is faced by firms operating under a mineral production sharing system (MPSA) and another for those firms under a financial or technical assistance agreement (FTAA)," the group further said.
Bantay Kita explained the measure also proposes that local government units hosting mining operations get 80% of local business tax collected compared to the current 70%.
Also, half of the national government's collection from mining will also be given to LGUs with mining operations compared to the current 40%.
Also proposed by the bill are the additional 5% export tax on raw ore to encourage the processing of ores in the country and 10% surcharge on cash flow to raise government's share and that of LGUs.
The bill, the industry group also said, wants to create the Natural Resource Trust Fund where proceeds from mine extractions go. It also seeks to institutionalize the Philippine Extractive Industries and Transparency Initiative.
HB 5843 is still pending before the House ways and means committee.
Bantay Kita is a coalition of groups pushing for transparency and accountability in the extractive industry.