Local govts to get tax royalties early, says MGB

Communities hosting mining operations will get their share of tax royalties earlier than previously established, Mines and Geosciences Bureau Director Edwin Domingo said in a weekend statement. “We trying to facilitate the early and accurate release of taxes accrued to the local government units where there are ongoing mining activities," he said. On top of the 2 percent excise tax, mining companies pay local governments a 5-percent royalty tax derived from the company’s annual budget. Of the 5-percent royalty tax, 60 percent goes to the national government and local governments get 40 percent. The 40 percent share of local governments is charged against the current year’s General Appropriations Act. The departments of Finance, Budget, Interior and Local Government, Environment and Natural Resources issued a memorandum of agreement last week to speed up the process and release of tax royalties. The memo ensures that the funds would be released by the Budget Department within 30 days after receiving the joint certification from the Mines Bureau and the Finance Department. Mineral production is forecast post $2.95 billion dollars in gross revenue this year. —VS, GMANews.TV