Business
Potential Changes to Philippines Mining Tax Laws
Potential Changes to Philippines Mining Tax Laws.
About this update from Bezant Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7617O Bezant Resources PLC 11 August 2014 \n \n\n11 August 2014\nBezant Resources Plc\n(\"Bezant\" or the \"Company\")\n \nPotential Changes to Mining Tax Laws in the Philippines\n \nBezant (AIM: BZT), the AIM listed copper-gold exploration and development company operating in the Philippines and Argentina, notes the recent proposal regarding potential adverse changes to the Mining Tax Laws in the Philippines. \n \nFor approximately the last two years, the Philippines Government has been undertaking an extensive review of all aspects of its domestic mining industry covering, inter alia, licence ownership, development pathways and financial and social obligations (the \"Mining Review\"). This review forms part of the Philippines Government's on-going drive to restructure most of the country's major domestic industries. \n \nIt has recently been reported in the Philippine press that the Mining Industry Coordinating Council (\"MICC\"), a civil service body, is putting forward a proposal for a revenue-sharing scheme for mining companies whereby the Philippines Government would receive 55 per cent. tax on a mining operation's adjusted net revenue or 10 per cent. tax on its gross revenue, plus a percentage of windfall profit, whichever is higher. In order for MICC's proposal to become law, MICC must submit its proposal to the President of the Philippines who must then put an appropriate bill to, firstly, Congress and secondly to the Senate for their approval. To date, the MICC has not confirmed that its proposal has been formally submitted to the Philippines President and there is no fixed time period by which the Philippines President would thereafter be required to pass the proposed bill via Congress and the Senate for approval.\n \nThe Chamber of Mines of the Philippines (\"COMP\") has expressed its opposition and concerns with respect to the abovementioned tax proposal. Bezant is currently working with certain other major operators in the Philippines mining sector to seek to consult with the MICC and the Philippines Government in order to outline how such a revenue-sharing scheme would potentially adversely affect inward investment for the Philippines. As the Mining Review was nominally initiated as part of a private sector-wide plan to liberalise the Philippines' domestic eco...