1 month ago
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Citing its importance for economic development, the Chamber of Commerce of the Philippine Islands (CCPI) has expressed full support for a Senate measure aimed at modernizing the country’s mining fiscal regime.
Senate Bill (SB) No. 2826, or the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act,” proposes a five-tier windfall profit tax system that ranges from one to ten percent and a margin-based royalty between one to five percent.
The bill, which is one of the priority measures of the Legislative-Executive Development Advisory Council (LEDAC), was approved on third and final reading on Monday, Feb. 3.
In a statement, the CCPI said SB No. 2826 aligns with the organization’s Economic Compass Pillars 5 (ECOMP-P5) advocacy.
The ECOMP-P5 is the CCPI’s core advocacy work program that strives to "rebuild the Philippines' glorious past and navigate the future”. Specifically, the proposed legislation falls under the vision of strengthening local industries by utilizing natural resources.
“The Chamber believes that with the right policies and strategic investments, the mining sector can be a driver of economic prosperity,” the group said.
The CCPI, the oldest business institution in the Philippines, noted that the bill will help foster a stronger mining industry that will generate employment and boost productivity.
“This supports the growth of other minerals-based industries, such as automotives and semiconductors. It allows us to move up the global value chain, increasing export revenue,” it added.
Also included in SB No. 2826 is the proposed ban on exporting locally extracted raw minerals, which shall take effect five years after being signed into law.
The CCPI stated that local industries lose potential value when raw materials are exported. And when there is market pressure, firms are inevitably forced to import costly finished goods.
It added that this predicament compels workers to “remain stuck in low-skill jobs, tilling rocks”.
“We firmly believe that the extraction and utilization of finite resources should primarily benefit local communities and businesses. As such, it must be carried out in a responsible, sustainable manner, with a long-term strategic vision,” the CCPI said.
However, the organization said the exportation of raw minerals should still be allowed, subject to guidelines, in consideration of the needs of local manufacturing.
The Chamber said preference for exports should be extended to “strategic partners and allied countries” with respect to existing international commitments.
Following Monday’s passage of SB No. 2826, the CCPI is pushing Congress for immediate passage and consolidation with its counterpart in the House of Representatives, House Bill (HB) No. 8937.
Once enacted, the group said a whole-of-society approach and a stronger public-private collaboration is a must to ensure that provisions of the legislation are successful.
The CCPI likewise supports conducting a study on the socio-economic impact of the proposed measure.
“We call on the government to seriously address key challenges in the mining sector. Priorities should include improving infrastructure, reducing energy costs, and developing a skilled workforce,” it added.
