President Marcos Advocates for Simplified Fiscal Regime in Mining to Ensure Fairness and Compliance

President Ferdinand “Bongbong” Marcos Jr. has called on lawmakers to back a simplified fiscal regime for the mining industry, aimed at creating a fair and consistent framework for all stakeholders. Speaking at the 2023 Presidential Mineral Industry Environmental Award, Marcos highlighted the proposed Rationalization of the Mining Fiscal Regime, which includes a new margin-based royalty ranging from 1.5% to 5% on income from mining operations outside designated mineral reservations.

The current system only applies royalties to mines within mineral reservations, with varying obligations based on agreements. Additionally, Marcos tasked the Department of Environment and Natural Resources (DENR) with enhancing its regulatory oversight to ensure mining operations adhere to safety and environmental standards. This follows Administrative Order No. 2022-04, which mandates biodiversity management within mining areas.

DENR Secretary Ma. Antonia Yulo-Loyzaga affirmed the agency’s alignment with the Department of Finance’s stance on the fiscal changes, including potential windfall profit taxes.