The Philippine Government will collect a larger share of mining companies’ revenues, although it is already being criticised for its high level of taxation.
The Philippines has nine million hectares of highly mineralised areas and is believed to comprise some of the world’s largest reserves of nickel, gold and copper.
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By next year, the government intends to pass tax legislation that comprises fair sharing, where both the mining company and asset owner are fairly rewarded, reports Reuters.
However, Philippine Congress will give the final decision on the revenue-sharing formula, taking into account the industry’s position.
Philippine finance secretary Cesar Purisima told the Reuters ASEAN Summit that the government should be getting one half of the gross revenue from mining companies.
"Where I start is 50-50," Purisima said.
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By GlobalData"The return of the government must be two-fold; as owner of the mineral and two, as a taxing authority."
During January and September, mining investments amounted to $787m, compared with $807.7m in 2012 and $1.15bn in 2011, according to the Mines and Geosciences Bureau.
Present mining laws, including income tax breaks for start-up projects, have not created a win-win situation for the government and industry, Purisima added.
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