THE House committee on ways and means will focus on an appropriate tax regime for the mining industry, which will be weighted towards supporting growth, its chairman said.
Albay Representative Jose Ma. Clemenete S. Salceda said that as such, the committee expects to approve House Bill (HB) No. 373.
“We need growth affirming policies,” he said in a statement on Viber. “I will be pushing through with Mining Tax Reform as the first order of business of the Committee on Ways and Means.”
HB 373 proposes a royalty of 3% on gross output of large-scale metallic mining operations within mineral reservations, graduated rates on the profit margin of large-scale metallic miners outside of mineral reservations, and a 1/10 of 1% rate on gross output of small-scale metallic miners.
Mr. Salceda, who filed the bill in June, said it is a “necessity to promote economic recovery amidst continuing threats to growth, such as the COVID-19 (coronavirus disease 2019) pandemic.”
The bill will also boost the mining industry’s potential contribution to gross domestic product (GDP) while safeguarding the rights of host communities.
The committee will have its first meeting om Monday. — Matthew Carl L. Montecillo