THE Philippine mining industry is calling for significant reforms in tax policy and regulatory processes to revitalize the sector and attract foreign investments.

During an industry luncheon on Friday, Philippine Nickel Industry Association (PNIA) President Dante Bravo highlighted the need for a uniform tax treatment for mining companies. He said that the current 2-percent tax rate imposed by local government units is burdensome for mining companies.

"We hope for a standardization of the tax treatment for local government units and for mining companies to be classified as contractors or exporters," Bravo said.

He added that despite being registered with some government agencies, such as the Department of Trade and Industry, and the Bureau of Internal Revenue as exporters, local government units still classify their companies as mining firms.

The PNIA chief said that the proposed classification as an exporter could lower the tax burden to 1 percent, which he said was more feasible given the current state of the sector.

"We are aiming for a uniform tax treatment and a simplified process...these are among the things we are trying to do in order to attract more foreign investments," said Bravo.

Citing Fraser Institute's 2023 Survey of Mining Companies, Bravo said that the Philippines ranked 72nd out of 86 mining jurisdictions for investment.

He said that this low ranking reflected historical challenges, including constitutional disputes and moratoriums on mineral agreements.

"It does not come as a surprise that we have a very low ranking in terms of investment attractiveness. But as a major mining country, we must keep our stake in the global market and ensure that our country remains a relevant driver in global innovation for generations to come," Bravo said.

The industry's long-term vision includes exploring new opportunities especially as demand for minerals used in electric vehicles and renewable energy systems continue to increase.

The PNIA also noted that a continued collaboration would result in meaningful reforms. Bravo added that appointing a "czar" for the mining industry could be a game changer.

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