Proposed mining tax hike 'really heavy,' says Global Ferronickel

ABS-CBN News

Posted at Nov 28 2017 11:06 AM

MANILA - The potential doubling of mining taxes will be a "really heavy" burden and some players "might not survive" if commodity prices are down, a mining company head said Tuesday.

The Senate on Monday doubled excise tax rates on mining as part of a broader tax reform package that it hoped to pass this week.

The mining sector fell 3.72 percent in early trading Tuesday at the Philippine Stock Exchange compared to a 0.87-percent drop in the main index.

"If the price of the commodity nickel is good, we can survive. If the price is down, some might not survive," Global Ferronickel Holdings president Dante Bravo told ANC's Market Edge with Cathy Yang.

Bravo said the higher excise tax rate would be an additional burden to the 30 percent corporate income tax that miners are paying.

Such an increase could be "negative in the near term," said BDO Unibank chief market strategist Jonas Ravelas.

"If they are able to operate well, without problems from government, it's gonna be positive both for mining and the government," Ravelas said.