Before or after profit? PH mulls how to hike mining share
MANILA, Philippines - There's no doubt about it: the government wants to increase the revenues it receives from mining activities. The question is how.
In the next meeting of the Mining Industry Coordinating Council (MICC), which is tasked to draft the mining reform measure, the body will deliberate on how to collect the higher cut, according to Environment Secretary Ramon Paje.
“It varies whether we will get it upfront, partial or at the bottom. That will have an impact on the revenue sharing scheme,” Paje said in a press conference on Friday, June 21.
Mines and Geosciences Bureau (MGB) Leo Jasareno explained that upfront collection involves collecting the excise tax based on projected earnings. Collecting from the bottomline entails collection after earnings.
Under the proposed revenue sharing scheme, around 5% to 7% would be collected from a fixed share of a mining company's gross revenues. The balance would be a percentage of the profit.
Paje also told reporters said that during a recent meeting of the MICC, the economic cluster agreed to raise the government's share to between 8% to 10% from the previous target of 7% to 10%.
Among the tasks of the MICC is to identify the no-go zones. In the council's previous meeting, the Department of Tourism has identified the 78 ecotourism sites, while the Environment Department has identified 249 protected areas.
Paje said the MICC intends to finish the draft revenue sharing bill before the 16th Congress resumes session in July.
The MICC is the inter-agency body created by Executive Order No. 79, which lays down the Aquino administration's policy on mining.
The mining reform measure is one of the priorities of the Aquino administration. - Rappler.com