An enhanced mining fiscal regime

President Ferdinand “Bongbong” Marcos Jr., or PBBM, recently signed into law Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, in simple ceremonies held at Malacañang.

- ATTY. MIKE TOLEDO

With President Bongbong Marcos are Chamber of Mines of the Philippines trustees and the author: (From left) Fortun, Narvasa and Salazar senior partner Roderick Salazar III, COMP executive director Atty. Ron Recidoro, Philex Mining Corp. president and CEO Eulalio Austin Jr., the author, Sagittarius Mines, Inc. president Joaquin Lagonera, and Platinum Group Metals Corp. president Dante Bravo

The new piece of legislation modifies the tax and royalty structure for large-scale metallic mining operations to increase government revenue and ensure fairer profit sharing.

Key features of the new law include a new tiered royalty system, a windfall profits tax, a thin capitalization rule, and project-specific “ring-fencing.”

The law aims to simplify the tax system while making it more transparent, accountable, and responsive to environmental protection and national progress.

It likewise promotes transparency and accountability by, among others: authorizing the Bureau of Internal Revenue and Bureau of Customs to audit mineral sales and exports; directing funds for research, environmental protection, and sustainable practices; and increasing the share of mining revenues for local government units.

In his speech during the signing ceremony, the President said that “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.”