DBM releases P21.7M CAR’s share in mining tax

LOCAL government units hosting the operation of large scale mining companies in the Cordillera are set to receive their share from the excise taxes collected from the mining industry between December 2011 and the fourth quarter of 2014.

This was announced by the Department of Budget and Management (DBM) in a news statement recently saying the agency has released P233.8 million to cover the 40-percent share of LGUs covering the said periods.

Of the total excise taxes released, P21.7 million will directly be received by provinces, municipalities and barangays in the Cordillera.

Philex Mining

Corp., Lepanto Consolidated Mining Co. and Benguet Corp. are three big mining companies operating in the Cordillera region, all in Benguet while the Irisan Lime Project holds a mineral processing permit and Mountain Rock Aggregates and ML Carantes operate industrial gravel- andsand companies.

The DBM press release listed the Caraga region to have received the largest share with P100.5 million. Caraga hosts several mining projects producing various mineral commodities, including gold, copper, chrome, nickel, iron and limestone.

Other regions with large shares include Region 7 with P29.2 million; Region 2 with P27.3 million; and, Region 4B with P22.2 million. The regions with the lowest shares are Regions 11 and 6 with P52,440 and P95,300.76, respectively.

The 40- percent share from gross collection derived from national wealth, such as mining, royalties, forestry and fishery charges within an LGU’s jurisdiction, is mandated under the local government code.

“We have issued the allotment and corresponding cash allocation for the release of the lawful share of LGUs in the proceeds from the utilization and development of minerals in their respective areas. The funds are now released based on the joint certification of mining tax collections issued by the Bureau of Internal Revenue and the Treasury, as well as the schedule of the corresponding shares of recipient LGUs,” Secretary Florencio Abad said in a press statement.

Abad added the funds released are charged against the P1.5 billion appropriated for the purpose in the current year’s national budget.

The proceeds from the share of LGUs shall be appropriated by their respective Sanggunian to finance local government and livelihood projects.