May 25, 2014

Mining revenue sharing bill to be finalized soon

An article from BusinessWorld reported today that the Mining Industry Coordinating Council (MICC) is set to meet this week. MICC will work on submitting a draft bill to MalacaƱang this week for the revenue sharing scheme for the mining industry. While basic items of the bill have already been agreed upon, the specifics are still under review and will only be released once approved by President Aquino.

Our take: We view this development positively as it proposes to move things along after an almost 2-year moratorium on the issuance of new mining permits. In July 2012, Executive Order 79 froze the issuance of new permits pending the passage of a new industry revenue sharing scheme that will replace the 2% excise tax on gross revenues plus the 30% corporate income tax.

A resolution of this stumbling block will hopefully reinvigorate the local mining industry, as players have been reluctant to make further investments in the face of regulatory uncertainty. – WealthSec