DENR wants to increase excise taxes on mining

MANILA - The Department of Environment and Natural Resources (DENR) wants amendments to the country's Mining Act of 1995.

In an interview with ANC, Environment Secretary Ramon Paje said the existing law on mining, which pegs excise tax at a mere 2% would be grossly disadvantageous to the government and communities.

He said Congress should amend the law and raise the gross revenues from mining to 5% to 7% before the 2013 elections.

“The position of the president is if we continue signing contracts at 2%, we are depriving the future generations…My proposal is to certify it as urgent… Hopefully they will be able to pass it before the elections, but if not, we can ask the president to make it an urgent bill and make it a priority bill for the next Congress,” he said.

Malacañang released on Monday Executive Order 79, which prescribes that new legislation on revenue sharing should be passed before new mining agreements can be signed. " No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect," the EO read.

The mining policy drew a slew of reactions from stakeholders.

Amid protests, however, Paje hailed the new mining policy as a balanced and sound one.

He also believes it will elevate the environmental standard and will protect communities against the ill- effects of mining.