President Ferdinand Marcos Jr. on Wednesday called on legislators to push for a simplified fiscal regime for the mining industry.

The President is referring to the Rationalization of the Mining Fiscal Regime, which he described as “fundamental to creating a fair and equitable mining environment for everyone involved.”

“I urge all our dedicated agencies and esteemed members of Congress to support the Rationalization of the Mining Fiscal Regime,” Marcos said during the 2023 Presidential Mineral Industry Environmental Award (PMIEA) at the Palace.

The bill proposes a revised fiscal regime, imposing a four-tier, margin-based royalty ranging from 1.5 percent to five percent on income from mining operations outside of mineral reservations.

Under the current fiscal regime, obligations of mining groups and companies vary depending on the mining agreement. It also imposes taxes only for mines operating within a mineral reservation.

Marcos also directed the Department of Environment and Natural Resources (DENR) to strengthen its regulatory capabilities for the industry.

“It is equally vital for the DENR to strengthen regulatory capabilities for all mining operations to ensure compliance with safety and environmental standards,” he said.

Among the regulations in place, the President mentioned the issuance of Administrative Order No. 2022-04, mandating biodiversity management in mining operations, along with the establishment of the National Environment and Natural Resources Geospatial Database.

The measure reflects the government’s commitment to responsible practices, the President noted.

The President also pointed out that the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, signed in May this year, emphasizes the dedication to sustainable resources management.

“This landmark legislation ensures that a robust system is in place to quantify and integrate the value of our country’s natural assets into national economic planning and decision-making,” he said.

“This will enable us to better balance economic gains with environmental protection and guarantee that the true cost of resource extraction is accounted for.” Presidential News Desk