MAr{rt4 pHr.
rpprNEs r rHunsony} TovEMBER
Miners: Hous e measuf€.
will kill the industry i
AII other companies that operate outside declared mineral reservations
no longer be exempted from royalty tax under the proposed
By Aldn urcia
@tribuhepkl-alui
BAGUIO CITY -philippine
While the
members of the
Mine Safety and Environment
Association (PMSEA) have
expressed optimism over a more
competitive fiscal regime, they
however, have reservations over
a proposed measure that hurdled
the House of Representatives'
committee on ways and means.
They have asserted that the
measure would 'kill' the industry.
0n third and final reading the
committee chaired by Albay Rep.
Joey Salcedaapprwed a new fiscal
regime that will, among others,
rmpose a J percent tax royalh
on top ofthe 4 percent excise tax
on mining companies that either
opemte inside or outside a mineral
reservation area.
Salceda's committee exempts
non-metallic mines from
royalty tax which is part of
the consolidated mining fiscal
regime bills in the House of
Replesentatives.
While the Salceda-sponsored
bill
imposes a lower royalty
tax for cornpanies that operate
within a mineral reservation
area, all other comfanies that
operate outside declardd mineral
reseryations will no longer be
exempted from royalty tax under
measure
the proposed measure.
The current fiscal regime
imposeS a 4 percent excise
tax plus a 5 percent royalty
on mining companies that
operate within declared mineral
reserration areas.
If it is 3 percent royalty
tax and all other taxes will
be removed, then that S a.n
excellent proposal.
Though the non-metalli c
mining companies - which
include st<ine, sand, rock or
similar rnaterials from natural
deposits welcome the House
committee-approved version,
gold, copper, silver, and other
metallic mineral companies have
strongly opposed the proposed
measure,
Said measure exempts small-
scale mining from royalty,
whether they operate in mineral
reseruation areas or not.
Speaking during a press
conference at the kick-off
ceremonies of the 66th Annual
National Mine Safety and
Environment Conference in
Bagrio City on Tuesday, Walter
Brown, chairman emeritus
of Apex Mining Co. Inc. and
president of PMSEA said the
House committee-approved
version is "un{air" and will kill
zor g
l
will
the metallic minerals industry.
The new tax regime passage
was announced by Mines and
Geosciences Bureau
Director Wilfredo
Moncano
during the kick-off ceremonies
of the annual safety conferenie
in Baguio Cifi
Moncano, hiinself expressed
dismay, noting that while the
committee on ways and means
chaired by Salceda accepted the
MGB's position on the proposed
fiscal regime, he said it was not
considered by the members of
the committee.
Brown said PMS0A, a
volunteer organization of mining
companies which include quarry
cornpanies and mining-related
industries, will communicate
their concems to the senate.
with Xhe hope that the senators
will listen to the general .t
sentiment of the industry.
Ultimateba PMSEAWiI
of the mining
industry to
the
Office of the President, said
Brolvn.
He added that companies eam
small revenues fiom with lowgade
ore, like Oarmen Copper. Ilence, a
gls$income based tax will hurt the
compa,n/s f inancial standing
"If it is 3 percent royalty
tax and all other taxes will be
removed, then that is an excellent
ploposal But a 3 percent royalty
tax in addition to the excis€
tax, which is 4 percent, it will
kill the producers. Because it
depends on the grades of the
ore. If the grade of the ore
is.low like (that of) Carmen
Copper, then the net income
is low," he pointed out.Jg!.r