Mining law

MANILA, Philippines – Legislation that serves as the bedrock of the country’s mining industry
continues to evolve, from the Mining Act of 1995, Executive Order 79 and most recently, a
revised IRR.

MANILA, Philippines - Mining is one of the most hotly contested issues in the country today,
with staunch supporters from both anti and pro groups. What cannot be denied is the country’s
abundant mineral wealth, estimated at US$840 billion, and the lapse from its former heyday in
the 1970s and 1980s when it was responsible for 20% of the country’s export earnings and a
leading source of employment.

FAQs about the Pantawid Pamilyang Pilipino Program (4Ps)

 The conditional cash transfer (CCT) program locally known as Pantawid Pamilya Pilipino
Program, or 4Ps, is a government program that provides conditional cash grants to the poorest of
the poor in the Philippines. The program aims to break the cycle of poverty by keeping children
aged 0-18 healthy and in school, so they can have a better future.

 The program is implemented by the Department of Social Welfare and Development, with the
Department of Health, the Department of Education and the National Economic and
Development Authority as partners.

 Households receive cash grants if children stay in school and get regular health check-ups, have
their growth monitored, and receive vaccines. Pregnant women must get pre-natal care, with
their births attended to by professional health workers. Parents or guardians are required to
participate in monthly community-based Family Development Sessions to learn about positive
child discipline, disaster preparedness, and women’s rights.

 Beneficiaries are objectively selected through the National Household Targeting System, also
known as Listahanan, which is based from a survey of the physical structure of their houses, the
number of rooms and occupants, their access to running water, and other factors affecting their
living conditions.

 The program has one of the most comprehensive poverty targeting databases in the world today,
covering 75% of the country’s population. It has been used extensively to identify poor and
near-poor beneficiaries for national and local government programs.
 Started in 2007, the government expanded the program in December 2016 to reach a total of 20
million Filipinos belonging to 4.4 million households. The program benefits about 20% of the
population, the majority of the nation’s poor.

 9 million children are currently benefiting from the program, 1.9 million of which are in high
school. The program has also achieved almost universal enrollment for elementary age children
of 4Ps households.

 Social protection programs, Pantawid included, have cushioned the poor from the adverse
impacts of various shocks the country experienced over the past six years. A study estimates that
the program has led to a poverty reduction of 1.4 percentage points per year or 1.5 million less
poor Filipinos.

 The 4Ps is currently the world’s fourth-largest CCT program based on population coverage. It
complements the government’s other development priorities such as generating jobs and
creating livelihood opportunities for the poor.

General Impact

 1.5 million less poor Filipinos or an estimated poverty reduction impact of 1.4 percentage points
per year

 Household heads, spouses, and other adults are more encouraged to work and set up their own
businesses

 87% of 4Ps parents are now more optimistic about their situation and their children’s futures

Health

 Reduction in severe stunting among beneficiary children

 Lower maternal mortality in the past five years because more mothers deliver babies in health
facilities (7/10 live births)

 Drastic decrease in alcoholism in 4Ps households (spending on vices was lower by 39%)

 4Ps beneficiaries consume more rice and cereals than non-beneficiaries

Education

 10.18 million children currently benefit from CCT, 1.9 million of which are in high school

 Near universal school enrolment of elementary age children for 4Ps households (98%)
 6% higher gross enrollment rate for beneficiary high school students

 Higher spending on education among 4Ps households (206 Pesos more per school-aged child per
month vs non-4Ps)

 Decrease in child labor days (7 days less a month for 4Ps households)

 333,673 graduated from high-school in 2015, 13,400 of which received honors

Local Economies

 P households invest more in working assets (livestock, machineries) than non-beneficiaries

 4Ps households spend more on basic needs such as food, education and medicine that stimulate
the growth of the local economy

ABOUT AMBISYON NATIN 2040

AmBisyon Natin 2040 represents the collective long-term vision and aspirations of the Filipino
people for themselves and for the country in the next 25 years. It describes the kind of life that
people want to live, and how the country will be by 2040. As such, it is an anchor for
development planning across at least four administrations.
AmBisyon Natin 2040 is a picture of the future, a set of life goals and goals for the country. It is
different from a plan, which defines the strategies to achieve the goals. It is like a destination that
answers the question “Where do we want to be?”. A plan describes the way to get to the
destination; AmBisyon Natin 2040 is the vision that guides the future and is the anchor of the
country’s plans.
AmBisyon Natin 2040 is the result of a long-term visioning process that began in 2015. More
than 300 citizens participated in focus group discussions and close to 10,000 answered the
national survey. Technical studies were prepared to identify strategic options for realizing the
vision articulated by citizens. The exercise benefitted from the guidance of an Advisory
Committee composed of government, private sector, academe, and civil society.
The life of all Filipinos in 2040:

Matatag, Maginhawa at Panatag na Buhay

By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life.
In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we
have enough for our daily needs and unexpected expenses, that we can plan and prepare for our
own and our children’s future. Our family lives together in a place of our own, and we have the
freedom to go where we desire, protected and enabled by a clean, efficient, and fair government.
Filipinos are strongly rooted: matatag. Filipino families live together; there is work-life
balance so that there is time to spend with family even for members who work. On weekends,
families and friends enjoy time together in parks and recreational centers. It is a high-trust
society with a strong sense of community. There are volunteer opportunities, and Filipinos spend
time to serve the community, help others who are in need, and contribute to various causes.
Filipinos are comfortable: maginhawa. No one is poor, no one is ever hungry. Filipino families
live in comfortable homes with the desired amenities and secure tenure. Families and friends are
within reach because transport is convenient and affordable, and they can take a vacation
together within the country and abroad. Children receive quality education so that they realize
their full potentials and become productive members of society. Decent jobs that bring
sustainable income are available, including opportunities for entrepreneurship.
Filipinos are secure: panatag. Filipinos feel secure over their entire lifetime. They expect to live
long and enjoy a comfortable life upon retirement. There are resources to cover unexpected
expenses, and there are savings. They feel safe in all places in the country. Filipinos trust their
government because it is free of corruption and provides service to all its citizens equally.
Matatag
 Family is together
 Time with friends
 Work-life balance
 Volunteering
Maginhawa
 Free from hunger and poverty
 Secure home ownership
 Good transport facilities
 Travel and vacation
Panatag
 Enough resources for day-to-day needs, unexpected expenses and savings
 Peace and security
 Long and healthy life
 Comfortable retirement
Realizing the AmBisyon

All sectors of society, whether public or private, should direct their efforts towards creating
opportunities for Filipinos to enjoy a matatag, maginhawa at panatag na buhay. Government,
in particular, must use its tools of fiscal, monetary and regulatory policies to steer the
development path towards enabling Filipinos to attain their AmBisyon. This pertains to all
dimensions of development: economic, human and physical capital, institutional, social and
cultural.
By 2040, the Philippines is a prosperous middle class society where no one is poor. People live
long and healthy lives and are smart and innovative. The country is a high-trust society where
families thrive in vibrant, culturally diverse, and resilient communities.

Filipinos live in a prosperous, predominantly middle class society where no one is poor.
Economic growth must be relevant, inclusive and sustainable. Over the next 25 years (until
2040), per capita income must increase by at least three-fold. More than the increase in income,
economic growth must progressively improve the quality of life of
the majority of Filipinos.

AmBisyon can be partly achieved by having competitive enterprises that offer quality goods and
services at affordable prices. Government must encourage investments in these sectors by
improving market linkages, simplifying government procedures, and facilitating access to
finance. These should be complemented by appropriate human capital development, science,
technology and innovation. Following are the priority sectors that have direct impact
on AmBisyon:
Housing and Urban Development
Construction, construction-related
manufacturing, house development-related manufacturing, and utilities (electricity, gas, and
water).

Manufacturing
Food processing, housing related, construction-related,
transport manufacturing, and
other manufacturing.

Connectivity
Roads and bridges, port,
airports, vehicles, transport systems, and communication.

Education Services
Formal education and re-tooling services.

Tourism and Allied Services

Resort, rest-recreation hotels,
accommodation, travel and tour
cultural shows, heritage sites, etc.

Agriculture
Food production, commercial and industrial crop, agricultural
biotechnology, etc.

Health and Wellness Services

Primary, secondary, and tertiary care, pharmaceuticals, wellness facilities, sports and fitness
facilities, etc.

Consumer financing, enterprise financing, and insurance savings mobilization.

Government must also ensure that economic growth is broad-based across sectors and regions; it
must result in a more equal income distribution. Moreover, there should be aggressive
interventions to increase opportunities for the poor to participate in the growth process even as
they are protected against the negative impact of economic and political instabilities, natural and
man-made calamities. Poverty must be eradicated by 2040, if not earlier.

It must also be recognized that certain individuals cannot immediately participate in the growth
process. For infants and children, there is the requisite care, guidance, health and education
services until they become mature enough. It is important that parents and families should be
able to provide these, although government should stand ready to fill the gap. A major
intervention, therefore, is for parents to adequately prepare for having a family.
Filipinos live a long and healthy life.
A long and healthy life allows people to realize their full potential and to enjoy the attainment of
their AmBisyon for many years. This is borne out of healthy lifestyle choices. New products and
processes that are safer and cleaner, and certainly products that promote good health, are needed
as well.

Policies that promote work-life balance can reduce the strain on people’s health. Filipinos must
also be given more affordable, clean and safe options for rest and recreation, like open spaces,
nature parks and public sports and fitness facilities. In case of illness, Filipinos must have access
to affordable and good quality healthcare.

Ensuring the quality of health care and health-related products and the safety of other products is
the responsibility of government as well

Filipinos are smart and innovative.

Well-educated, innovative Filipinos will continuously improve the quality of life in the
Philippines. If education is the process of facilitating the “acquisition of knowledge, skills,
values, beliefs and habits”1 , formal education is the structured method of facilitating the
acquisition of a select set of such knowledge, skills, values, beliefs and habits. Government,
therefore, must be proactive in setting the agenda for education. It is, after all, about molding the
future Filipino and creating the future Philippine society.

More than ensuring that Filipino students acquire the foundational literacies (reading, numeracy,
scientific literacy, ICT literacy, economic and financial literacy, cultural and civic literacy), the
formal education system must also ensure that students obtain competencies (critical thinking,
problem-solving, creativity, communication, collaboration) and develop character qualities
(curiosity, initiative, persistence and grit, adaptability, leadership, social and cultural
awareness)2 . This may require a revision of the curriculum content, but more importantly, the
mode of delivery. At the same time, there must be access to lifelong learning opportunities so
that competencies are continuously upgraded and updated
Filipinos live in a high-trust society.
A high-trust society allows Filipinos to enjoy a panatag na buhay together with their families.
Extending to the bigger community, a high trust society equals a matatag na pamayanan.

A high-trust society allows people to see to their economic pursuits, secure in the knowledge that
they will be able to enjoy the fruits of their labor. However, societal ties must be strengthened
where every Filipino cares for the plight of his fellow Filipino. Every Filipino must feel upset if
another Filipino is found hungry and poor, or unable to recover from unfortunate events.

A caring society does not evolve overnight; it must be cultivated. Venues and opportunities for
interpersonal interaction must be provided. But usually, it takes root from building trust in
established institutions like government. Government must therefore begin the process of
confidence-building by being clean, fair and citizen-centered. After all, a high-trust society is the
most durable bedrock for vibrant, culturally diverse, and resilient communities of the Philippines
by 2040– hopefully, sooner.

FEDERALISM
KINAKATIGAN ko ang mungkahi ni incoming Senate President Koko Pimentel na ang babago
sa Saligang Batas ay ang Constitutional Convention (Concon). Ang bubuo nito ay ang mga
delegadong halal ng bayan. Kinakailangan kasing mabago ang Saligang Batas dahil nais ng
uupong Pangulo ng bansa na si Rodrigo Duterte ay mabago ang sistema ng ating gobyerno.
Federalism ang nais niyang ipalit sa kasalukuyang unitary system na ipinangako niya noong siya
ay nangangampanya.

Ito raw ang paraan para maikalat ang salapi ng bayan. Sa kasalukuyan, mayroon aniyang mga
bahagi ng bansa, gaya ng Mindanao, na hindi inaabot ng biyaya buhat sa Maynila, na sentro ng
gobyerno. Kaya magulo sa mga lugar na ito, dahil sa kahirapan.
Ang federalism ay bagong sistema ng pamamahala sa ating bansa na dapat malaman at
maintindihan ng mamamayan. Ang pinakamagandang paraan para sa layuning ito ay ipaubaya sa
Concon ang pagbabago sa Saligang Batas. Dahil delegado na iboboto ng mamamayan ang bubuo
nito, mangangampanya ang mga nagnanais maging delegado. Sa pagkuha nila ng suporta sa
taumbayan, ipaliliwanag nila ang kanilang posisyon kung bakit pabor o tutol sila sa federalism.
Isyu, at hindi tao, ang iboboto ng sambayanan. Bukod sa panahon ng kampanya ng mga
delegado, pormal nang tatalakayin ng mga halal na delegado ang isyu. Magiging maliwanag na
ang federalism sa taumbayan at magagabayan sila kapag bumoto na sila para sa ratipikasyon ng
Saligang Batas.
Ang buod ng federalism ay hahati-hatiin ang bansa sa kung ilang parte at ang bawat isa ay may
sariling gobyerno.
Malaya sa bawat isa ang mga ito at makagagawa ng naisin. May sariling paraan ang bawat isa
kung paano patatakbuhin ang gobyerno. Pero, sa ilang bagay at isyu, ang may kapangyarihan at
karapatang magpasya ay ang federal government o ang gobyerno ng buong bansa.
 Hindi isyu na ang ilang bahagi ng bansa ay hindi inaabot ng salapi ng bayan na kailangan nila sa
pag-unlad. Ang isyu rito ay kung paano natin mapapag-isa ang ating mamamayan para
magkaintindihan at maitanim sa kanilang puso ang pag-ibig sa bayan at pagmamahal sa bawat
isa. Aabutin ng tulong ang lahat kapag marunong tayong magmahal. Ang bansa natin ay binubuo
ng maraming isla. Kung ano ang dami ng isla ay siya namang dami ng salita. Pangarap pa
hanggang ngayon ang nais ng ating mga ninuno na magkaroon ng sariling wika.
Paparte-partihin pa ang bansa na may kanya-kanyang gobyerno at malaya pang patatakbuhin ito.
Lalo itong makokontrol ng malalakas at masalapi. At lalong madaling mangibabaw ang mga
dayuhan sa ating bansa dahil hindi na sila ang gagawa ng paraan para mahati tayo, ayon sa
kanilang polisiyang “Divide and rule”.
Hinati natin mismo ang ating sarili sa pamamagitan ng federalism. (Ric Valmonte)

What taxes are included in the Philippine tax reform program to be implemented starting 2018?

We summarize below a list of revised and brand-new taxes that are part of the Tax Reform for
Acceleration and Inclusion or TRAIN program initiated by the Department of Finance (DOF)
and recently ratified by Congress. Implementation of said new taxation has begun on January 1,
2018 after being signed into law by Pres. Rodrigo Duterte in December 2017.
Let’s take an in-depth look at what’s included in this tax reform program.

* * * UPDATED resources on the approved TRAIN Tax Reform below:

 Here’s your new Take-Home Pay under TRAIN Tax Reform
 New Income Tax Rates and Income Tax Tables in the Philippines (2018)
 List of VAT-exempt items under new Tax Reform
 10 Additional TRAIN Tax Reform Items that You Probably Didn’t Know
1. New Personal Income Tax Rates
Personal income tax rates will be lowered, while salaried employees earning annual income
of P250,000 or below will be exempted from paying income taxes.
Full details of the New Personal Income Tax Rates and Income Tax Tables can be found
here.
2. Lower Tax Rates for Professionals
With the revised personal income tax table, salaried employees will surely benefit from the lower
tax rate. Self-employed professionals, meanwhile, can expect to pay lower taxes as well with the
reduced tax rates for professionals, as follows:
ANNUAL SALES OR GROSS
TAX RATE
RECEIPTS

P250,000 and below 0%

Below P3 million May choose either 8% flat tax on gross receipts or follow
personal income tax table

Above P3 million Subject to personal income tax table

Professionals will no longer have to file and pay the percentage tax; instead they will be charged
a withholding tax of 8% flat rate on gross sales or receipts.
Self-employed professionals earning annual income of P3 million and below may choose to pay
the 8% flat tax or follow the personal income tax table.
 3. Tax on 13th Month Pay and Other Bonuses
The threshold for tax exemption on 13th month pay and other bonuses received by salaried
employees has been raised from the current P82,000 to P90,000. This means 13th month pay and
bonuses paid to employees that amount to P90,000 or below will not be taxed.
4. Tax on Drinks using Sugar and Caloric / Non-Caloric Sweeteners
Beverages that use sugar and other sweeteners will be taxed effective January 2018. These
include softdrinks and other cola drinks, fruit juices, and powdered drinks, among others.

The sugar tax is as follows:

 P6.00 per liter of drink that uses caloric and non-caloric sweeteners
 P12.00 per liter of drink that uses high fructose corn syrup (HFCS)
5. Tax exemption of milk, 3-in-1 coffee, medicines for diabetes, etc.
Exempted from the sugar tax are milk, 3-in-1 coffee, 100% natural fruit juice or vegetable juice,
medically-indicated beverages, and drinks and beverages that use natural sweeteners such as
coco sugar or stevia.
Meanwhile, drugs and medicines prescribed for diabetes, high cholesterol, or hypertension will
also be exempted from the 12% VAT.
6. Taxes on LPG, Diesel, Gasoline, and other fuel products

Liquefied Petroleum Gas or LPG is currently not taxed, but will be charged excise tax as
follows:
 P1.00 tax per liter in 2018
 P2.00 tax per liter in 2019
 P3.00 tax per liter in 2020
Diesel is also currently not taxed, but will have new taxes, as follows:
 P2.50 tax per liter in 2018
 P4.50 tax per liter in 2019
 P6.00 tax per liter in 2020
Gasoline, both regular and unleaded, will have the following excise taxes raised from the current
P4.35 per liter:
 P7.00 tax per liter in 2018
 P9.00 tax per liter in 2019
 P10.00 tax per liter in 2020
Other fuels and oil products will be taxed as follows:

 Aviation gas – P4.00 per liter

 Asphalts – P8.00 per kilo
 Kerosene – P3.00
 Naphtha – P7.00
 Bunker fuel – P2.50
 Lubricating oil – P8.00
 Paraffin wax – P8.00
 Petcoke – P2.50
UPDATE: Pres. Duterte has vetoed the exemption from excise taxes of petroleum products used
as input, feedstock, or as raw material in the manufacturing of petrochemical products, or in the
refining of petroleum products, or as replacement fuel for natural gas fired combined cycle
power plants.
7. Taxes on Cars and Automobiles

The new excise taxes for cars will follow a four-tier scheme:

Excise Tax on Cars and Automobiles

NET MANUFACTURER'S TAX RATE ON HYBRID TAX RATE ON NON-
PRICE CARS HYBRID CARS

P600,000 and below 2% 4%

Above P600,000 to P1 million 5% 10%

Above P1 million up to P4 10% 20%

million

Above P4 million 25% 50%

Pick-up trucks and electric vehicles will be exempted from additional taxes. Hybrid cars, as seen
in the table above, will be charged 1/2 (half) the taxes imposed on non-hybrid automobiles.
 8. Tax on Coal
The approved excise tax on coal is as follows (currently P10.00 tax per metric ton):
 P50.00 tax per metric ton in 2018
 P100.00 tax per metric ton in 2019
 P150.00 tax per metric ton in 2020
9. Tax on Tobacco Products
Excise taxes on tobacco products will be increased to P32.50 initially during the first six
months of 2018, then will rise to P35.00 from the rest of 2018 until 2019.
From 2020 to 2021, the tobacco tax will rise to P37.50, followed by a fixed tax of P40.00 to be
imposed from 2022 to 2023. From 2023 onwards, tobacco taxes will rise 4% annually.
10. Donor’s Tax
Donations or gifts with at least P250,000 worth will be charged a donor’s tax of 6% flat rate.
This will be charged regardless of the relationship between the donor and the donee.
11. Estate Tax
The estate tax, or tax levied on the properties or estate of lawful heirs and beneficiaries inherited
from a deceased person, will now be subject to a flat rate of 6% on the amount in excess of P5
million.
Estates with a net value of P5 million and below will be exempted from paying the estate
tax. Family homes that are valued at P10 million or less will also be exempted from estate tax.
Under existing tax laws, only family homes worth P1 million are exempted.

12. Tax on Cosmetic Surgery and other Aesthetic Procedures

Starting 2018, there will be a 5% tax on cosmetic surgeries, aesthetic procedures, and body
enhancements.

13. Documentary Stamp Tax

The documentary stamp tax (DST) charged on some legal or business transactions will double
from P1.50 to P3.00 beginning 2018.

14. Stock Transaction Tax

Stock trading in the Philippines might be affected with the revised taxes on stock market activity.

The stock transaction tax — a tax charged on stock sellers when a buy or sell transaction is
made — will be increased to 0.6% of the gross trade amount from the current 0.5% rate.
Stock-related transactions of companies not listed in the Philippine Stock Exchange (PSE) will
be slapped with a higher stock transaction tax of 15%, an increase from the current 5% or 10%.
 15. Foreign Currency Interest Income Tax
The tax on interest income on foreign currency deposits is currently pegged at 7.5%. This will
increase to 15% of the interest on foreign currency deposit unit (FCDU) under the TRAIN tax
reform.

List of Vetoed Items by Pres. Duterte

Here are five (5) items in the tax reform bill that was vetoed by Pres. Duterte when he signed the
bill into law.

1. Veto on the 15% special tax rate for employees of Regional Headquarters (RHQ), Regional
Operating Headquarters (ROHQ), Offshore Banking Units, and Petroleum Service
Contractors and Subcontractors. Thes employees will be taxed using the regular income tax
table as shown in Item No. 1 above.
2. Veto on the exemption of self-employed professionals, with gross sales or receipts not
exceeding P500,000, from the payment of the 3% percentage tax.
3. Veto on the excise tax exemption of petroleum products used as input, feedstock, or as raw
material in the manufacturing of petrochemical products, or in the refining of petroleum
products, or as replacement fuel for natural gas fired combined cycle power plants (see Item No.
6 above).
4. Veto on the zero rating of sales of goods and services to separate customs territory and tourism
enterprise zones, specifically, the areas under the Tourism Infrastructure Enterprise Zone
Authority (Tieza).
5. Veto on the earmarking of incremental tobacco taxes