Mining council agrees on fixed revenue sharing for congress action

The Mining Industry Coordinating Council (MICC) has agreed on a fixed government-private sector revenue share on gross and net profit that would guarantee government's equitable if not better share in mining revenues than the existing structure, Trade and Industry Secretary Gregory L. Domingo said.

Domingo, a member of the MICC, told reporters at the sidelines of the signing of the Memorandum of Agreement for the Enhanced Business Name Registration System yesterday that the MICC fixed agreed rate would still be submitted to the private sector for consultations and would be presented to Congress when it opens in June this year as part of the amendments of the Mining Act.

"We agreed last week on a structure and after that we will open for consultation with major players if they are amenable with it," Domingo said.

Without divulging the rates, Domingo said that MICC has agreed on a "certain percentage of gross and participation of the bottomline."

The percentage share of the government on the gross as well as the net income would be set at a fixed rate.

"The assumptions on the fixed rate agreed by MICC are based on industry figures," he stressed noting that the agreed structure would be "much simpler and equitable."

At present, the estimated government revenue take from the mining industry is between 10 to 20 percent only of gross revenues.

Domingo said that the estimate was P12 billion government tax take or less than 10 percent of P140 billion estimated total industry revenues.

He explained that the tax rate that the mining companies pay differs because some companies are under the Mineral Production Sharing Agreement, others are under Financial Technical Assistance Agreement while others are enjoying income tax holidays.

This time, mining companies are no longer entitled to income tax holidays under the proposed new mining law. Last year, the Board of Investments, which registers projects with ITH, also scrapped the incentives for mining projects even if the existing Mining Act still provides the tax perks for this industry. Domingo said the proposed amendments to the Mining Act provide a level playing field to all industry players. (BCM)

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Mercy pleas for Indonesia death row inmates as families arrive
    Mercy pleas for Indonesia death row inmates as families arrive

    Families of foreign drug convicts set to be hauled before the firing squad in Indonesia issued desperate mercy pleas on Saturday, as relatives and diplomats descended on a prison island ahead of the looming executions. Consular officials were arriving at a town near Nusakambangan, the high-security prison island where its executions are carried out, and where all of the death row convicts are now congregated. The foreigners -- two from Australia, one each from Brazil, France and the …

  • United States seeks access to Philippine bases as part of Asia pivot
    United States seeks access to Philippine bases as part of Asia pivot

    The United States has asked for access to Philippine military bases in eight locations to rotate troops, aircraft, and ships as Washington shifts its forces to Asia and as China expands its military presence in the South China Sea. U.S. Defense Secretary Ash Carter, in a speech in Arizona, has outlined Washington's next phase in its Asia "pivot", deploying its most sophisticated destroyers, bombers and fighters to the region. The Asia "pivot" has already seen U.S. Marines rotating through the …

  • China's island-building to loom large at SE Asia summit
    China's island-building to loom large at SE Asia summit

    China's creation of new island footholds in contested seas will hover over a Southeast Asian summit that has become an annual test of the region's nerve in standing up to its massive neighbour. The South China Sea hot potato drops this year into Malaysia's lap as the rotating chair of the 10 member Association of Southeast Asian Nations (ASEAN) and host of Monday's meeting. ASEAN states Vietnam, the Philippines, Malaysia and Brunei claim parts of the strategic South China Sea, but Beijing …

  • Philippines, China trade accusations over sea threats

    MANILA, Philippines (AP) — The Philippines accused China of aggressive maneuvers against its reconnaissance plane and fishermen in disputed seas where Beijing has stepped up construction of artificial islands, but China reiterated its claim on the strategic waterways. …

  • Indonesia orders execution of Mary Jane, 9 others
    Indonesia orders execution of Mary Jane, 9 others

    Indonesia has ordered preparations for the execution of 10 drug convicts, including Filipina Mary Jane Veloso, as the Philippine government filed yesterday a second appeal for judicial review of the case to save the maid from death by firing squad. The Attorney General’s Office (AGO) of Indonesia released an official letter dated April 23, instructing prosecutors to prepare for the execution of 10 convicts, the Jakarta Post reported yesterday. The execution would be conducted after the …

  • Noy to visit Canada, Japan
    Noy to visit Canada, Japan

    President Aquino will embark on a state visit to Canada in May and Japan in June to meet with his counterparts and promote Philippine interests. Deputy presidential spokesperson Abigail Valte said Aquino accepted the invitation from Canadian Governor General David Johnston to make a state visit to Canada from May 7 to 9. Tied to this trip is the President’s one-day working visit to the United States to meet with potential investors and with the local Filipino community in Chicago, Valte …

  • Business groups back K to 12 program
    Business groups back K to 12 program

    The government’s K to 12 program adding two more years to basic education received support from various business groups yesterday. However, they urged relevant government agencies to deal with issues regarding the implementation of Republic Act 10533, the Enhanced Basic Education Act or K-12 Law. In a statement, business groups led by the Philippine Business for Education (PBEd) said RA 10533 is a milestone piece of legislation that intends to bring the Philippines up to par with the rest of …

  • Happiest nations: Phl ranks 90th
    Happiest nations: Phl ranks 90th

    Switzerland is the happiest country in the world, while the Philippines placed 90th, according to a global ranking of happiness unveiled in New York on Thursday. Switzerland was followed closely by Iceland, Denmark, Norway and Canada. The 2015 World Happiness Report is the third annual report seeking to quantify happiness as a means of influencing government policy. The United Nations published the first study in 2012. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options