Senate begins plenary deliberations on mining bill | ABS-CBN
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Senate begins plenary deliberations on mining bill
Senate begins plenary deliberations on mining bill
RG Cruz,
ABS-CBN News
Published Sep 17, 2024 07:46 PM PHT
MANILA — Senate has begun plenary deliberations on Senate Bill 2826 or the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act" which is one of the priority measures identified in the Legislative-Executive Development Advisory Council in the 19th Congress.
MANILA — Senate has begun plenary deliberations on Senate Bill 2826 or the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act" which is one of the priority measures identified in the Legislative-Executive Development Advisory Council in the 19th Congress.
Senator JV Ejercito sponsored the bill during the plenary session on Tuesday for the Committee on Ways and Means.
Senator JV Ejercito sponsored the bill during the plenary session on Tuesday for the Committee on Ways and Means.
Ejercito explained that the bill serves as a "critical building block" in realizing the objectives of the Philippine Development Plan.
Ejercito explained that the bill serves as a "critical building block" in realizing the objectives of the Philippine Development Plan.
"This measure seeks to foster an enabling policy environment especially with an eye towards being more competitive with our regional competitors, by correcting the current mining tax regime that is fraught with complications. This shall enable the state to harness the full potential of our national mineral resources by reforming how the government derives its revenue share from the development and utilization of its resources,” Ejercito said in a speech.
"This measure seeks to foster an enabling policy environment especially with an eye towards being more competitive with our regional competitors, by correcting the current mining tax regime that is fraught with complications. This shall enable the state to harness the full potential of our national mineral resources by reforming how the government derives its revenue share from the development and utilization of its resources,” Ejercito said in a speech.
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He said the bill proposes a modernized tax regime specifically for large-scale mining activities—those involving exploration, feasibility, development, utilization, and processing, under a mineral agreement or financial or technical assistance agreement, as defined in Republic Act No. 7942 or the Philippine Mining Act of 1995.
He said the bill proposes a modernized tax regime specifically for large-scale mining activities—those involving exploration, feasibility, development, utilization, and processing, under a mineral agreement or financial or technical assistance agreement, as defined in Republic Act No. 7942 or the Philippine Mining Act of 1995.
Ejercito added that the bill also empowers the government to levy more revenues and royalties on all mining operations, whether inside or outside mineral reservations.
Ejercito added that the bill also empowers the government to levy more revenues and royalties on all mining operations, whether inside or outside mineral reservations.
"Furthermore, the measure introduces a windfall profits tax based on simplified 5-tier rates ranging from 1% to 10%. This proposed concept will enable the government to have a larger share of the profits in cases when metal prices are high and mining companies are earning more. This will also streamline compliance and administration for both industry and government, while minimizing opportunities for aggressive accounting practices,” he said.
"Furthermore, the measure introduces a windfall profits tax based on simplified 5-tier rates ranging from 1% to 10%. This proposed concept will enable the government to have a larger share of the profits in cases when metal prices are high and mining companies are earning more. This will also streamline compliance and administration for both industry and government, while minimizing opportunities for aggressive accounting practices,” he said.
Ejercito also said that the bill seeks to strengthen safeguards against tax minimization.
Ejercito also said that the bill seeks to strengthen safeguards against tax minimization.
"It limits the prospect of thin capitalization by setting a cap on how much companies can rely on debt financing to reduce their taxes through deductible interest expenses. Additionally, this bill also seeks to protect against ring-fencing by treating each mining operation of a company with multiple projects as a separate taxable entity, preventing them from offsetting profits from one project with losses from another to lower their overall tax bill," Ejercito added.
"It limits the prospect of thin capitalization by setting a cap on how much companies can rely on debt financing to reduce their taxes through deductible interest expenses. Additionally, this bill also seeks to protect against ring-fencing by treating each mining operation of a company with multiple projects as a separate taxable entity, preventing them from offsetting profits from one project with losses from another to lower their overall tax bill," Ejercito added.
The bill also has has mechanisms to ensure the speedy and timely release of the share of local government units in the taxes collected from mining and other fees while guaranteeing public disclosure and scrutiny of the use of mineral resources.
The bill also has has mechanisms to ensure the speedy and timely release of the share of local government units in the taxes collected from mining and other fees while guaranteeing public disclosure and scrutiny of the use of mineral resources.
"Should these reforms come to fruition, the DOF estimates that the proposal will garner an average of Php 6.26 billion annual additional income for our nation’s coffers," Ejercito said.
"Should these reforms come to fruition, the DOF estimates that the proposal will garner an average of Php 6.26 billion annual additional income for our nation’s coffers," Ejercito said.
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Tobacco stakeholders discuss ways to fight entry of illicit cigarettes
Tobacco stakeholders discuss ways to fight entry of illicit cigarettes
Jervis Manahan,
ABS-CBN News
Published Jan 27, 2025 06:05 PM PHT
MANILA — Tobacco stakeholders in the Philippines are saying that fighting the entry of illegal tobacco products into the country is one of the biggest concerns of the industry.
MANILA — Tobacco stakeholders in the Philippines are saying that fighting the entry of illegal tobacco products into the country is one of the biggest concerns of the industry.
At the Tobacco Summit held Monday, Rohbert Ambros, regulation department head of the National Tobacco Administration (NTA), said most of the illicit products were coming from either Indonesia or Malaysia.
At the Tobacco Summit held Monday, Rohbert Ambros, regulation department head of the National Tobacco Administration (NTA), said most of the illicit products were coming from either Indonesia or Malaysia.
Ambros noted that the volume of legal tobacco products was on a downward trend while the volume of illicit products was increasing.
Ambros noted that the volume of legal tobacco products was on a downward trend while the volume of illicit products was increasing.
He also said that, according to data, the prevalence of smoking increased in 2021, while the availability of illegal tobacco products has doubled since 2019.
He also said that, according to data, the prevalence of smoking increased in 2021, while the availability of illegal tobacco products has doubled since 2019.
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"Increasing our efforts to fight illicit tobacco trade will improve the country's image in the global market," Ambros said.
"Increasing our efforts to fight illicit tobacco trade will improve the country's image in the global market," Ambros said.
"Raising our standards of curbing illicit trade through whole-of-government and whole-of-society approach will enable our country to compete globally," he added.
"Raising our standards of curbing illicit trade through whole-of-government and whole-of-society approach will enable our country to compete globally," he added.
The Bureau of Internal Revenue estimated that the national government had incurred tobacco excise tax collection loss of up to P100 billion annually due to illicit trade.
The Bureau of Internal Revenue estimated that the national government had incurred tobacco excise tax collection loss of up to P100 billion annually due to illicit trade.
NTA also noted that the illicit tobacco trade adversely impacts the livelihoods of 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers, and their family members.
NTA also noted that the illicit tobacco trade adversely impacts the livelihoods of 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers, and their family members.
Stakeholders talked about global trends, opportunities, and strategies to strengthen the Philippine tobacco sector’s growth in the global market.
Stakeholders talked about global trends, opportunities, and strategies to strengthen the Philippine tobacco sector’s growth in the global market.
“The summit aims to underscore the importance of the local tobacco industry in the economy, explore growth opportunities, and strengthen collaborative efforts to combat illicit tobacco trade,” NTA Administrator Belinda Sanchez said.
“The summit aims to underscore the importance of the local tobacco industry in the economy, explore growth opportunities, and strengthen collaborative efforts to combat illicit tobacco trade,” NTA Administrator Belinda Sanchez said.
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