LGUs may lose over DENR’s mining crackdown, says DOF

The local government units where the 28 mining sites will be closed or suspended by the Department of Environment and Natural Resources (DENR) can lose over P650 million revenues annually, the Department of Finance (DOF) said Wednesday.

The DOF made the initial estimate based on 2015 data.

In a preliminary report to Finance Secretary Carlos Dominguez III, the Bureau of Local Government Finance (BLGF) said that losses such as taxes, fees and other charges directly collected by the local governments from mining firms are estimated at P441.92 million, while the LGUs’ share from mining taxes collected by the national government account for another P211.72 million.

“The total estimated potential revenue loss of the affected LGUs from all sources, based on 2015 data, amount to P653.64 million,” BLGF executive direc- tor Nino Alvina said.

The BLGF said the provinces affected either by the closure or suspension order by DENR Secretary Gina Lopez are Benguet, Nueva Vizcaya, Palawan, Cebu, Bulacan, Zambales, Eastern Samar, Dinagat Islands, Surigao Del Norte, and Surigao Del Sur.

Alvina said the BLGF based its initial report to the Finance Secretary on 2015 data because reports for 2016 will come in by the end of the first quarter (March 31).

He said the BLGF had sourced its data from the preliminary estimates of local treasurers and their electronically submitted Statements of Receipts and Expenditures (eSREs) that now cover reports on earnings from mining and other extractive industries.

The preliminary reports would still have to be reviewed because some LGUs are host- ing two to five mining projects, Alvina said.

Dominguez last week instructed city and municipal treasurers in areas hosting mine sites to submit their respective reports on the final and complete revenue impact of the DENR directive by the end of this work week or by February 10.

According to Alvina, LGUs directly collect from mining firms operating in their municipalities and cities the following taxes and fees: Real Property Tax (RPT), Local Business Tax, Mayor’s Permit Fee, Regulatory and Administrative Fees, and Occupation Fees.

“The provinces of the affected component municipalities are also imposing (i) Governor’s Clearance, (ii) Verification Fee, (iii) Environmental Fees, (iv) Soil Depletion Tax, and (iv) Processing Permits for Vessel,” Alvina said.