Government eyes additional P3 billion from mining fiscal regime

MANILA, Philippines —  The government expects to generate around P3 billion in additional revenues annually once the proposed mining fiscal regime takes effect, the Department of Finance said.

Defined as “incremental increase,” Finance Secretary Ralph Recto said the more important outcome is to finally start reforms in the sector and more investments in mining.

“There are also a few gains, but nothing really significant. What’s important is that we can start it. That there would be more mining investments and that we are able to collect at least some incremental increases,” Recto told reporters.

The Congressional bicameral conference committee ratified the mining fiscal regime last June. It is one of the priority measures of the Legislative-Executive Development Advisory Council’s during the 19th Congress aimed at ensuring a fair and equitable mining environment.

Under the current fiscal regime, mining companies face varying obligations depending on their agreements, with royalties collected only from operations in mineral reservations.

The proposed measure seeks to simplify the system by removing such distinctions and ensuring the government secures a fair share from resource extraction.

Mines outside mineral reservations will be subject to a margin-based royalty tax, while all mining projects will face a windfall profits tax with simplified tiers for easier compliance.

It also introduces ring-fencing rules to prevent companies from offsetting losses in one project against profits in another, ensuring fairer revenue collection.

Recto said the ratification of the proposed mining fiscal regime is a long-overdue reform that will simplify tax policy, attract investments and unlock the country’s mineral potential while ensuring fair returns and supporting the global clean energy transition.

“With this proposal, we are providing a straightforward and streamlined fiscal policy to encourage more investments in our mining sector. This bill will help fully unlock the Philippines’ rich mineral potential and position us as a major player in mineral production,” Recto said.