BAGUIO CITY, May 7 (PNA) -– In terms of taxes, mining companies operating in the Cordillera Administrative Region (CAR) contributed more than PhP14.55 billion to the national coffers in six years, data from the Mines and Geoscience Bureau (MGB) of the Department of Environment and Natural Resources (DENR) disclosed, May 6.
According to Felizardo Gacad, head of the Mine Safety and Environment Division of the MGB-CAR, the amount is apart from the local taxes and fees paid directly to the host local government units where the mines are operating.
“Of course, not included here are the jobs generated in the community either directly needed by the company or as subsidiary employment,” Gacad said.
He said that aside from the national and local taxes, mining firms in the region also paid PhP2.93 million as royalties paid to indigenous cultural communities (ICC), where 95 percent of the region belongs to the ICCs.
Gacad explained that ICCs are entitled to 1.25 percent of the total yearly production of mining companies as royalties and the mode of payment is contained in the individual memoranda of agreement between the company and the ICC.
“It is but proper for mining companies to pay the excise taxes to the LGUs concerned so these LGUs can directly and immediately feel what mining can do for their areas,” Gacad said.
“The good thing about this,” he expounded, “is that the government was awakened to the fact that the host communities need these monies to make them more accommodating to mining activities in their localities.”
One such measure included in the 1995 Philippine Mining Act is the Social Development and Management Program (SMDP) which allots 1.5 percent of the yearly operating cost of mining firms for local development projects identified by the host LGU and with community leaders together with the officials of the mine company.
In the Cordillera region alone, the SDMP fund amounted to PhP51 million in 2012, PhP90 million in 2013, PhP96 million in 2014, and PhP236 million project for this year.
“This is a total of PhP595 million which will be used to develop the host communities’ local infrastructure or human development projects,” Gacad explained.
He clarified that the amount given to communities are not given in cash by the company but these projects are funded from SMDP amount.
Projects which can be funded from the SDMP are construction of farm-to-market roads, construction of school buildings, scholarships to deserving students and livelihood projects to improve the lives of residents of the communities where the mining company operates. (PNA)