InterAksyon.com means BUSINESS
MANILA, Philippines – The Department of Environment and Natural Resources (DENR) is seeking proposals from the mining industry that would top the government’s proposed share from the business.
Environment Secretary Ramon Paje said the agency is soliciting proposals from mining companies that would ensure an additional P16 billion revenue windfall for the government.
“As long as it can equal the revenue that it can generate, which is P16 billion, we are willing to accept that,” Paje said.
DENR is set to meet with mining industry stakeholders and civil society groups on April 26 to 27 to discuss issues concerning mineral extraction in the country.
The Aquino administration is trying to extract more revenues from the mining sector on the back of soaring commodity prices and amid perceptions that the government is not getting its “fair share” from minerals resources. Under the law, all mineral resources are owned by the state.
At present, the government’s share is in the form of excise tax, which represents two percent of earnings of all operating mining companies.
To maximize revenue from the mining sector, the DENR chief proposed the declaration of more “mineral reservations” once the new mining policy has been approved by Malacanang.
Once the mining area is declared a mineral reservation, the government is entitled to collect an additional five percent royalty.
There are about 339 mining companies holding mineral production sharing agreements (MPSAs). Of the total, 39 are already operational.
“If all of these MPSAs can be declared as mineral reservation, we can get at least P16 billion. If in the 50-50 revenue we get P18 billion, of course we will go for it. If it becomes P17 billion, I'll go for it,” Paje said.
InterAksyon.com means BUSINESS
BUSINESS NEWS
