Think tank wants higher share in mining for LGUs

A special mining study urged government to increase the share of local governments and allow mining companies to pay LGUs directly.

This was among the key recommendations presented in a round table discussion on special study titled: Mining in the Philippines: Problems and Suggested Solutions.

The study was commissioned by the Stratbase ADR Institute and authored by Dr. Carlo Arcilla, a professor of the National Institute of Geological Sciences of the University of the Philippines.

“Revenues from excise taxes should be shifted substantially toward the LGUs (more than 30 percent) and away from national government. The LGUs bear the brunt of the impact of mining and they should proportionately share more in the sharing of tax revenues. This is an application of subsidiarity in the distribution of needs. The sharing itself, even more importantly than the actual, must be done immediately, so as to have temporal cadence in the disturbance of mining and its benefits to the people most affected,” he said.

Arcilla cited the ongoing problem in delayed remittance to LGUs which has been documented to be as long as 10 years, which gives the wrong impression to local residents and political leaders who have to answer to their electorate.

“An exemption should be studied and granted to companies similar to that granted to firms in special economic zones that are allowed to pay taxes directly to the local government units. A solution. hopefully done by executive order, is to permit mining companies to directly pay LGUs their share of the excise tax and also to increase the LGUs share of the excise tax,” the paper added.

Dr. CP David, trustee of Stratbase ADR Institute supported Arcilla’s forward looking position, adding that there are already world class mining operations going beyond what is required by laws and can serve as success models in responsible mining operations with sustainability projects integrated with the needs of their communities.

The forum was attended by representatives from government, academe, environmental groups and the mining industry.

Stratbase ADRi will share the study to key policy leaders in both Houses of Congress, Malacanang, the DENR, CSOs and industry stakeholders.