MANILA -- The interagency Mining Industry Coordinating Council (MICC) has agreed to conduct the second round of “objective, science-based, and fact-finding” review of mining operations in 2019 to cover the remaining 15 mining companies which were part of the 41 mines initially reviewed by the Department of Environment and Natural Resources (DENR) under former Secretary Regina Lopez in 2016, the Department of Finance (DOF) disclosed in a statement Tuesday.
MICC is eyeing to commission the same team of experts following their outputs on the review of the environmental, economic, social, legal and technical aspects of the first batch of 26 mining companies that Finance Secretary Carlos Dominguez III has described as “highly commendable.”
The 33rd meeting of the MICC on December 12 was co-chaired by Finance Secretary Dominguez and Environment and Natural Resources Secretary Roy Cimatu.
During the same meeting, the MICC deferred a recommendation on the lifting of the moratorium on the issuance of new mineral agreements.
Executive Order (EO) 79 imposed a moratorium on new mineral agreements “until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect”.
The Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act 10963 increased the excise tax on mineral products from 2 percent to 4 percent. DENR queried whether the increase would be considered as having satisfied the condition of a legislation rationalizing the existing revenue sharing scheme.
However, the DOF clarified that TRAIN only increased the excise taxes and did not cover the implementation of a new fiscal regime for mining. The new fiscal regime proposed by the DOF covers other taxes and fees, such as royalty, windfall, profit, and incentives.
Given the clarification, the MICC resolved to defer a recommendation to lift the moratorium on new mineral agreements, stressing that a new revenue-sharing scheme and mechanisms for mining will be covered in the Package 2 plus of the Comprehensive Tax Reform Program.
The House of Representatives provides for this new fiscal regime to ensure that the government gets its rightful share of the profits from mineral resources by approving House Bill 8400 on third and final reading.
The bill was transmitted to the Senate on Nov. 13, 2018. (DOF PR)
