Mines chamber: More mining taxes to drive potential investors away

Imposing additional taxes on legitimate, large-scale mining companies will only drive investors away, an official of the Chamber of Mines of the Philippines said Monday. On that note, government should go after small-scale mining and quarry operators that do not pay taxes, Chamber of Mines President Philip Benjamin Romualdez told reporters at the sidelines of the first consultation meeting of the mining policy study group. “Our concern is that the government should implement the mining law on everybody. It is only but fair that the rule of law should be applied to all," Romuladez said. The Department of Environment and Natural Resources wants higher government take on mining revenues by declaring mining operations and those in advanced stages of planning and development declared as mineral reservations to collect 5-percent more in royalty tax over the 2 percent excise tax. “Being small should not be a license to evade paying taxes," Romualdez said, noting that legitimate mining companies are paying taxes. “Therefore, there is no need to add more taxes. This will be regarded as a disincentive to doing business in the Philippines," he added. By harmonizing the tax rules, government can easily recoup the P2.58 billion in estimated losses from small-scale mining operations and quarries that bypass the filing income tax returns. “We’re hoping that their balanced approach will shed light on issues of all the stakeholders. We’re confident that they will find a balance between the development of the country and mining…" he said. A final version of the mining policy — which incorporates inputs from the private sector — is now being crafted by a study group which consists of the DENR, Climate Change Commission, and Environmental Protection Commission. The group will try to resolve six issues that hound the industry:

• Lack of baseline data on mining operations
• Policy inconsistencies between local and national laws
• Governance and law enforcement concerns
• Lack of economic valuation in the mining sector
• Increasing government share in mining revenues
• And adverse impact of environmental degradation and climate change.

From an original deadline of Nov. 15, the group was given until Dec. 31, 2011 to present the final mining policy to Malacañang “The President, himself, wants to extend the deadline to give more chances for consultations. Stakeholders will be given opportunity to present their views in a series of new consultations," said Mines and Geosciences Bureau Director Leo Jasareno. — VS, GMA News