Marcos signs into law new mining tax system

Miners laud more consistent rules

- ALEXIS ROMERO

A priority measure of the administration, Republic Act 12253 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act establishes a simplified and uniform fiscal framework for the mining sector and enhances environmental safeguards.

It also aims to provide fiscal predictability and stability for investors through clear tax guidelines, provide incentives to long-term investments and improve the mining sector's competitiveness.

"With the signing of the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, we are putting into place a system that is fairer, that is clearer and more responsive to the needs of both our people and the environment," Marcos said during the signing ceremony for the law at Malacañang.

"With this law, we send a very clear and powerful message: progress shall never come at the cost of our people, nor our planet. Minerals are finite. Once extracted, they are gone forever. But if we use them wisely — tax them fairly, protect our environment as we mine, and ensure that revenues return to the people — then their value will outlive all of us," he added.

The mining sector welcomed the newly signed fiscal regime despite the imposition of higher taxes, saying the reform offers stability as the Philippines seeks a bigger role in the global market for critical minerals. The Chamber of Mines of the Philippines (COMP) said higher taxation was "inevitable," but emphasized that what matters most to investors is the consistency of the rules.

"The new tax regime aligns the Philippines with global mining jurisdictions, making us more competitive and attractive to investors, especially at a time when the demand for critical minerals increasing worldwide," COMP president Michael Toledo said in a statement.