Closure of mining projects to cost host LGUs P650M in foregone revenues

Published February 9, 2017, 12:30 PM | Manila Bulletin

The directive of the Department of Environment and Natural Resources (DENR) to either shut down or suspend the operations of 28 mine sites across the country will cost the affected local government units (LGUs) in 10 provinces over P650 million yearly in foregone revenues, according to initial assessments made by the Department of Finance (DOF) based on 2015 data.

Mining / Credit: Wikimedia

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 director Nino Alvina said in his preliminary report to Dominguez.

The BLGF said the provinces affected either by the closure or suspension order 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 hosting 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 Feb. 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.

DOLE Secretary Silvestre Bello III informed Dominguez that emergency employment can be provided to displaced workers but only for a temporary time and in limited volume, while DTI Secretary Ramon Lopez said he will also pitch in proposals on how to generate jobs in the affected areas.

DPWH Secretary , meanwhile, said he will look into additional projects in communities hardest hit by the closure of mining operations so that jobs for the laid-off workers can be provided under a proposed supplemental budget.

(Article retrieved from: http://news.mb.com.ph/2017/02/09/closure-of-mining-projects-to-cost-host- lgus-p650m-in-foregone-revenues/)