MANILA — The Chamber of Mines of the Philippines (COMP) sought to review the Mining Industry Coordinating Council’s (MICC) proposed mining taxation scheme.
Urging the government for review, the group added that the tax structure of the scheme may discourage investments in the industry.
“We are dismayed that the MICC had moved forward with a proposed increased tax policy without taking into consideration comments and observations not only from the mining industry that will be directly affected by said policy but by authoritative third parties,” COMP said in the letter sent to the Office of the President yesterday.
A 10-percent tax imposition on gross revenues was approved by the creators of the scheme.
This means that other than a percentage of windfall profit, a tax of 55 percent is imposed on adjusted net mining revenues (ANMR), or the difference between gross sales and direct cost (direct mining cost and administrative expenses).
The said scheme applies to both the Financial Technical Assistance Agreement (FTAA) and metallic mining projects holding a mineral production sharing agreement (MPSA).
“The MICC-proposed tax structure cannot, by any measure, be considered fair or equitable, much less competitive,” the COMP letter stated. “It will not attract quality investment that the country needs to be able to develop its mineral resources in a responsible manner.”
While the group opposes the policies under the scheme, a draft of the bill was already submitted to the Office of the President for approval.