Jauhn Etienne Villaruel

Article (news)

Harlene Delgado

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:505px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1756956632911cropped-Screen Shot 2025-09-04 at 11.28.09 AM.png" style="width:505px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">President Ferdinand R. Marcos Jr. signs Republic Act (R.A.) No. 12253 or the ‘Enhanced Fiscal Regime for Large-Scale Metallic Mining Act’ in a ceremony at the Kalayaan Hall in Malacañan Palace on September 4, 2025. PCO/Facebook</span></span></span></div><p>MANILA — President Ferdinand Marcos, Jr. on Thursday signed Republic Act No. 12253 or the &quot;Enhanced Fiscal Regime for Large-Scale Metallic Mining Act&quot; in a ceremony in Malacañan Palace.</p><p>In his speech, the President said the signing of the law places a system that is “fairer, that is clearer, and more responsive to the needs of both the people and the environment.&quot;</p><p>Marcos said the law mandates mining companies that operate within the government’s designated mining sites to pay a royalty of five percent of their gross output, while those operating outside mineral reservations “will be subject to a margin-based royalty on income from metallic mining operations.&quot;</p><div><a href="https://www.abs-cbn.com/news/business/2025/1/13/new-mining-reporting-rules-take-effect-2010" rel="noopener noreferrer" target="_blank">New mining reporting rules take effect</a></div><p>The Chief Executive added that the law also imposes additional taxes when a company’s profit margin exceeds 30 percent, ensuring that the “government receives its fair share from the extra profit and that the benefits will ripple into the lives of ordinary Filipinos.&quot;</p><div><br/></div><div><strong>&#x27;GONE ARE THE DAYS&#x27;</strong></div><div><br/></div><p>In terms of tax collection, he further explained that each mining contractor is recognized as a separate taxable entity.</p><p>This, according to Marcos, prevents the consolidation of income and expenses of all mining projects by the same taxpayer.</p><p>“Gone are the days when a mining contractor can bury its profits beneath the weight of losses. No longer can we use the one project’s failure to conceal another project’s success,&quot; the President stated.</p><p>The Bureau of Internal Revenue and the Bureau of Customs are mandated to examine and audit all sales and exports of minerals and inspect mining company records, in coordination with the Mines and Geosciences Bureau.</p><p>Local government units will also receive 40 percent of the gross collections from excise taxes on mineral products, royalties, and other taxes or fees.</p><p>“This ensures that the communities who bear the brunt of mines will also experience their benefits,” according to Marcos.</p><div><br/></div><div><strong>&#x27;PEOPLE, PLANET OVER PROGRESS&#x27;</strong></div><div><br/></div><p>Ten percent of royalties from government-designated mining sites will also go to the Mines and Geosciences Bureau and the Metals Industry Research and Development Center.</p><p>Marcos said this is to “guarantee that part of the revenues is reinvested in exploration, in research, above all, environmental protection and sustainable practices.”</p><p>“With this law, we send a very clear and powerful message: Progress shall never come at the cost of our people, nor our planet,” the Chief Executive stated.</p><p>The estimated revenue impact from 2026 to 2029 is projected at P25.08 billion in total or an average of P6.26 billion per year, according to the Presidential Communications Office.</p><p>Special Assistant to the President for Investment and Economic Affairs Frederick Go called the signing of the law as a “significant milestone in positioning the Philippine mining sector as a key player in the global value chain.&quot;</p><p>“By modernizing the industry’s fiscal regime, we aim to drive economic growth, especially in support of green technologies, while protecting our environment and natural heritage,” he said.</p><p>He further underscored that the reform will “help generate jobs, increase government revenues for essential public services, and attract responsible mining investors that are committed to sustainable development.&quot;</p><p>“Through this law, we aim to foster inclusive prosperity - ensuring that our countrymen, our communities, and our future generations benefit from the responsible use of our mineral resources,” Go noted.</p><div><a href="https://www.abs-cbn.com/business/2024/9/17/senate-begins-plenary-deliberations-on-mining-bill-1903" rel="noopener noreferrer" target="_blank">Senate begins plenary deliberations on mining bill</a></div><div><br/></div><div><strong>RELATED VIDEO</strong></div><div><br/></div><div><strong><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/VumZRHnrqDo?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></strong><br/></div>

<p>The President said the law places a system that is “fairer, that is clearer, and more responsive to the needs of both the people and the environment."</p>

The President said the law places a system that is “fairer, that is clearer, and more responsive to the needs of both the people and the environment."

'Fairer, clearer': Marcos signs law reforming tax system for large-scale metallic mining

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'Fairer, clearer': Marcos signs law reforming tax system for large-scale metallic mining

Harlene Delgado,

ABS-CBN News

Published Sep 04, 2025 11:31 AM PHT

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Updated Sep 04, 2025 11:35 AM PHT

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