New mining tax law seen to generate P6-B in annual revenues

By Wilnard Bacelonia, Philippine News Agency

FILE: Para sa kapakanan ng ating mga komunidad at proteksyon ng kalikasan, pinirmahan ni Pangulong Ferdinand R. Marcos Jr. ang Enhanced Fiscal Regime for Large-Scale Metallic Mining Act. (PCO Photo)

MANILA – The Enhanced Fiscal Regime for Large-Scale Metallic Mining Act or Republic Act (RA) 12253 is expected to generate an additional PHP6 billion annually for the government, Senator Joseph Victor Ejercito said Tuesday.

Ejercito, the principal author and sponsor of the measure, witnessed the ceremonial signing of the law by President Ferdinand R. Marcos Jr. in Malacañang Manila on Sept. 4.

He said the reform establishes a fair and uniform tax regime for the mining industry.

“With this law, we harness the potential of our mining sector and turn our mineral wealth into national wealth. We make sure that mining works for the people, protects our environment, and fuels our national development,” he said.

The law guarantees the faster release of mining taxes and royalties to local government units, enabling them to fund projects and services that directly benefit their constituents.

Ejercito said the additional revenues could be used to finance major infrastructure programs and support Universal Health Care.

He lamented, however, that his proposal for a five-year moratorium on the export of locally-extracted minerals was excluded in the final version of the law, but vowed to pursue it in the next Congress to promote local processing and create more jobs.