Philippines: will TRAIN run over the mining sector?

In his July 2017 State of the Nation Address, Philippines President Rodrigo Duterte said he would tax miners to “death.” In December 2017, he signed Republic Act 10963--Tax Reform for Acceleration and Inclusion (TRAIN)—the first of six packages of a comprehensive program. TRAIN took effect on 1 January.

Under the new tax system, mining companies that extract metallic or non-metallic minerals are now subject to a 4 percent excise tax on the value of their production—double the previous rate. This excise tax is equivalent to what most countries would label a “royalty” on mineral production. What does this 100 percent increase mean for the sector?

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