The government is banking on stronger capital inflows into large-scale metallic mining following the issuance of the implementing rules and regulations (IRR) of Republic Act No. 12253, a reform expected to yield ₱6.3 billion in additional annual tax revenues and making the sector more attractive to long-term investors.
Finance Secretary Frederick D. Go said the new rules establish a simpler, more predictable fiscal regime, an essential factor in unlocking fresh mining investments that have been sidelined by regulatory uncertainty and complex tax structures.
The measure supports President Ferdinand R. Marcos Jr.’s push for a clearer and more accountable framework for developing the country’s mineral resources, ensuring both investor confidence and a fairer government take.
“This is a critical step forward in unlocking the full economic potential of the mining sector while maintaining safeguards for transparency, accountability, and protection of the environment,” Go said in a news release.
Signed into law on September 4, 2025, Republic Act No. 12253 removes overlapping and inconsistent tax treatments across different mining agreements. The Department of Finance (DOF) said the streamlined system lowers compliance risks for investors while strengthening the government’s ability to collect revenues efficiently.
Based on DOF estimates, the law will generate an average of ₱6.3 billion a year in incremental revenues from existing mining operations alone. Officials said significantly higher collections are expected as new capital enters the sector and previously stalled projects move forward under the more stable fiscal regime.
The IRR clarifies the tax base for royalties and windfall profits taxes, including allowable deductions and the treatment of gross output, key details closely watched by investors in evaluating project viability. It also formalizes filing, payment, and reconciliation procedures, with the Bureau of Internal Revenue (BIR) designated as the primary collecting agency.
To protect public revenues, the rules strengthen audit and monitoring provisions, mandate public disclosure of requirements, and institutionalize coordination among the BIR, Bureau of Customs, and other agencies. Project-level “ring-fencing” is also enforced to ensure taxes are properly accounted for on a per-project basis.
Go said the government will work closely with the Department of Environment and Natural Resources, revenue agencies, local governments, and industry stakeholders to ensure the law’s effective implementation.
Economic managers view the new fiscal regime as a pivotal reform that can draw larger, more responsible mining investments while delivering a steady and transparent revenue stream for the state and host communities.