There is room to improve the fiscal regime in the mining industry, according to an official of the Department of Finance (DOF) yesterday.
“(That is) one of the reforms that the DOF is looking at. We have been trying to push for reform not just in this administration but even during the previous administration,” Juvy Danofrata, DOF assistant secretary for fiscal policy and monitoring, said.
Danofrata said among the objectives of the reform would be to make sure that the taxation is uniform in all of the mining operations.
“Whether you are within the mining region or outside the mining region, you will be imposed the same royalty,” Danofrata said.
The DOF hopes to institute transparency in mining operations, including the results and data that are transmitted to the government, she added.
“We want that, and also (to) impose windfall or profit tax in addition to the current tax regime in the mining. So that’s the broad aspect of the reform,” she said.
Last August, the House committee on ways and means approved the unnumbered substitute bill to house bills 373, 2014, 2246 and 3888 or the proposed Philippine Mining Fiscal Regime Act.
Albay Rep. Joey Salceda earlier said the approved version is seen to bring the country’s effective tax rate on mining, considering all taxes, to 51 percent, up from 38 percent under the current system.
