THE Department of Finance (DOF) is aiming to complete the final draft of the implementing rules (IRR) for Republic Act 12253, also known as the Enhanced Mining Fiscal Regime Act, before the end of the year.
This was disclosed by Finance Undersecretary Karlo Fermin Adriano, Undersecretary for Fiscal Policy, who handles the Monitoring Group of the Department of Finance, during the recently-concluded Mining Philippines 2025 Conference and Exhibition.
In coming up with a final draft for approval by the Finance Secretary, he said a series of stakeholder engagements will be held next month.
Michael Toledo, chairman of the Chamber of Mines (COMP), said the new mining fiscal regime marks a turning point for the Philippine extractive sector, rehabilitating how revenues are shared, investments are attracted, and compliance is managed.
He said it is important, hence, to provide clarity on how the landmark reforms brought about by the law can support both responsible resource governance and development goals.
In his presentation, Adriano said the DOF is committed to fully implement the law, starting with coming up with the IRR.
‘The Department of Finance is committed to implementing this law swiftly, efficiently, and with full transparency. We will also continue to engage with all stakeholders,’ Adriano, who spoke about the Mining Fiscal Regime during a plenary session, said.
At the same time, the DOF is also working on expediting the share of local governments (LGU) that host mining operations.
For that, he said a Joint Administrative Order will be crafted in coordination with the DOF’s Bureau of Local Government Finance and the Department of the Interior and Local Government (DILG).
The Joint Administrative Order, he said, will be separate from the IRR of the Mining Fiscal Regime law.
Currently, he said, the DOF is working with the Bureau of Internal Revenue (BIR) to provide clarity on the business tax for mining, in recognition of mining companies as contractors of the government, making them subject to 5 percent business tax.
‘The BLGF and probably DILG will soon be issuing this clarification,’ he said.
According to Adriano, the implementation of the new Mining Fiscal Regime law, signed by President Ferdinand Marcos Jr. last month, will be transparent, underscoring that stakeholders’ engagement will be done and made public.
Meanwhile, the official said a roadmap for each of the commodities, such as gold, copper, and silver, will also be crafted.
We will need to determine our place in this global economy. We must be able to identify what our competitiveness is and determine what we are lacking,’ he said.