The measure – an unnumbered substitute bill – was approved in less than two minutes by the House panel, chaired by Davao City Rep. Isidro Ungab. It seeks to rationalize and institute a single fiscal regime for the mining industry, and enhance the equitable share of the government in the utilization of natural resources without compromising the mining sector‘s need for reasonable return on its investment.
Ungab noted that the bill was a “re-filed” measure and was approved by the House of Representatives on third and final reading during the 17th Congress. The measure also imposes royalty tax on small-scale mining operations equivalent to 1/10 of 1 percent of the gross output and a margin-based royalty tax on large scale mining operations outside the mining reservations.
The bill also seeks the creation of the Natural Resource Trust Fund. The revenues collected from the margin-based royalty paid by the large-scale metallic mining operations outside the mineral reservations shall accrue to the proposed Trust Fund, it said.