DoF concerned by finances of LGUs hosting mines

THE Department of Finance (DoF) said that the revenue lost from the Environment department’s decision to close some mines will have a significant impact on municipalities, as they heavily rely on taxes paid by those miners.

According to preliminary reports from the DoF, estimated revenue losses will amount to P441.92 million covering those local government units ( LGUs) hosting the five suspended and 23 shuttered mining firms, based on 2015 figures.

“At the national [ level], it’s going to hurt that were not going to get the mining revenue, but it’s not going to be fatal,” Finance Secretary Carlos G. Dominguez III told reporters yesterday.

“In some municipalities, that’s the only real income they have,” he added.

The Bureau of Local Government Finance however has yet to release data on the share of taxes paid by affected miners in their host municipalities’ total collections.

Meanwhile, Mr. Dominguez said he is not challenging Department of Environment and Natural Resources ( DENR) Secretary Regina Paz L. Lopez’ decision to close down the mines. He described the DoF’s position for the moment as “information- gathering” before it meets with the Mining Industries Coordinating Council ( MICC) this week.

“I am not going to question her [decision] because I haven’t seen the facts. I haven’t seen the reports, the rationale,” said Mr. Dominguez.

Mr. Dominguez has said previously that his main concern was those who will lose their jobs, as it is relatively difficult to find new jobs in the affected areas, especially, those located in remote towns.

“It is just as remote as you can get, people rely on these jobs. You cannot get a job elsewhere,” he said.

According to the Chamber of Mines of the Philippines, ( CoMP) around 1.2 million jobs will be lost following DENR’s decision.

Mr. Dominguez added that the DoF will also assess the knock-on effects on other sectors such as the manufacturers of mining supplies. —