September 03, 2013

Mining council studies revenue sharing scheme proposal

The Mining Industry Coordinating Council (MICC) is deliberating on the proposal of the Mines and Geosciences Bureau (MGB) for a simplified revenue sharing scheme between the government and the mining industry.

The proposal by the MGB stipulates the implementation of the present taxation scheme but incentives given to mining firms would either be lessened or eliminated. Also, the existing five percent  royalties imposed on projects operating in mineral reservations would be applied to all tenements.

Under the present system, mining companies pay the regular corporate income tax, two percent excise tax, business tax, royalty payments for indigenous peoples directly affected by mining operations, and royalty for mineral products extracted from mineral reservations. - WealthSec