Marcos signs measure imposing higher taxes on mining

Metro Manila, Philippines - President Ferdinand Marcos Jr. signed into law the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, which imposes new taxes and royalty payments on the industry while promising greater accountability and environmental safeguards.

“With this law, we send a very clear and powerful message: Progress shall never come at the cost of our people, nor our planet,” Marcos said during the ceremonial signing of Republic Act 12253 at Malacañan Palace.

The measure requires mining firms operating in government-designated sites to pay a royalty of 5 percent of their gross output. Those outside mineral reservations will be subject to a margin-based royalty, while additional taxes will apply if profit margins exceed 30 percent.

The law also prevents companies from consolidating income and expenses across projects by recognizing each mining contractor as a separate taxable entity.

Marcos said the Bureau of Internal Revenue and the Bureau of Customs will coordinate with the Mines and Geosciences Bureau to audit mineral sales and exports.

To ensure benefits reach communities, 40 percent of gross collections from excise taxes, royalties and other fees will go to local government units. Ten percent of royalties from designated mining sites will be allocated to the Mines and Geosciences Bureau and the Metals Industry Research and Development Center for exploration, research and environmental protection.

“Minerals are finite. Once extracted, they are gone forever. But if we use them wisely — tax them fairly, protect our environment as we mine, and ensure that revenues return to the people — then their value will outlive all of us,” Marcos said.