• 50/50 revenue sharing from mining proposed

    0

    The interagency body tasked to draft legislation for a new mining revenue scheme is now pushing for a 50/50 sharing from mineral resources, the Department of Environment and Natural Resources said on Monday.

    Environment Secretary Ramon Paje told reporters that the Mining Industry Coordinating Council has agreed to adopt a unified tax collection system, wherein the government will collect a 10-percent share from the gross revenue of mining projects.

    “Our final proposal is that 10 percent of the gross will go to the government and 10 percent will go to the mining company. Then, for net, we will split it 50/50,” Paje said.

    “The government’s share, as well as the company share, will be deducted or collected based on the shipments of minerals. In a way, it will be a 50/50 sharing from gross and net profit,” he added.

    Paje said that from the gross revenue sharing alone, the government could collect P10 billion annually.

    “So even if a mining company will have no profit, we are already assured of the 10-percent share from gross,” he added.

    At present, the government’s share in mining and exploration is only in the form of income tax, representing 2 percent of earnings of the 30 operating mining companies. At the current level, the government can only collect P800 million a year from the mining companies.

    “The government, with the simplified revenue collection, can collect at least P10 billion annually,” he said

    Paje also assured that local gov-ernment units would have an equitable share in revenues paid by mining companies.

    “Right now, the revenue sharing is 60/40 in favor of the national government. Under the proposed bill, we are moving it to 50/50,” he said.

    He said that they would leave the tax collection in nonmetallic minerals, including quarrying and gravel, to the local governm- ent units.

    Paje said that they expect to submit the draft of the bill to Congress by September.
    James Konstantin Galvez

    Share.