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MANILA, Philippines - Foreign business chambers in the country are calling for the passage of bills seeking the direct remittance to local government units (LGUs) of their share in taxes from mining operations.
In a letter to Sen. Ferdinand Marcos Jr., who chairs the Senate committee on local government, the Joint Foreign Chambers (JFC) said they appreciate the effort of the committee to start the deliberation on Senate Bills 1101 and 1419 as well as House Bill 4410 which provide for the direct remittance to the host LGU of its 40 percent share of the gross collection from national wealth taxes.
“We support the passage of this vital legislation to ensure that LGUs not only get their fair share of remittances from the mining industry but also receive it in a timely manner,” the JFC said.
The JFC noted that while the Mining Act promotes the national policy on mining, some LGUs have decided to close their provinces to mining operations.
“We believe that one practical reason is the slow, if not the absence of, remittance of the economic benefits from mining to many LGUs,” it said.
It cited that Article 10 of the Philippine Constitution states that LGUs are entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their jurisdiction.
The Local Government Code of 1991, it also cited, provides that LGUs have the duty and authority to protect and co-manage the environment and enhance the right of the people to a balanced ecology.
The JFC said the deliberations of the Senate committee on the bills have special significance given the country’s mining potential.
The country is estimated to contain $1.4 trillion worth of mineral reserves.
According to the Mines and Geosciences Bureau, the Philippines ranks second in the world in terms of its gold resources and third in copper resources.
Mining is among the Seven Big Winners or sectors that have high growth and employment potential for the Philippines being pushed by the JFC.
The other growth sectors being recommended by the JFC are agribusiness; business process outsourcing; creative industries; infrastructure; manufacturing and logistics; and tourism, medical travel and retirement.
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Source: Louella D. Desiderio, The Philippine Star. (15 October 2012)
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