CEBU MINING companies holding Mineral Production Sharing Agreement (MPSA) will have to pay the Provincial Government two percent of the local fair market value per metric ton of all extracted non-metallic mineral commodity.
This
was agreed upon by Governor Gwendolyn Garcia, Mines and Geosciences Bureau
(MGB) 7 Director Armando Malicse, and the MPSA holders, among others in a recent
meeting. “That is why we have called you ang tanang holders of MPSA issued by
the MGB, so that we could now define your positions and obligations to the
Province insofar as Section 124 of the Revenue Code is concerned,” Garcia said,
adding, the MPSA holders fall within the definition of Section 124 of the
Province’s Revenue Code.
“Now
kaning two percent of the local fair market value per metric ton of all
non-metallic mineral commodity extracted, mao na inyo bayran. Unya dili na ta
according to the table, according to actual volume extracted which will be
validated by the issuance of DRs (delivery receipts) kay para duna tay closer
monitoring og pila gyud ang volume,” the governor explained.
Currently,
the MPSA holders follow the table provided under Section 125 of the Revenue
Code that lays down the number of cubic meters with corresponding annual fixed
fee for the extraction of non-metallic minerals.
Garcia
said using the table as basis of their annual fixed fee seems unfair to other
permittees of the Province. “Kay kani man gud, we are all presuming
400,000 and below (cubic meters and metric tons). Kamo (MPSA holders) maoy
muingon nga 400,000 and below among volume, mao na among gi report sa MGB but
MGB does not actually count truck by truck pila gyud na inyong gi extract. And
it is unfair kun mismo ang mga processors nato they are paying by truck,” she
said.
“What
we would like is, if we are subjecting such rigid procedures to our own
permittees then we will also impose the same procedures sa uban kay ma subject to
abuse man. Unya it is unfair because all of these extractions are within Cebu
Province. Why should those that are issued by the Province be subjected to
stricter controls and that those permits issued by the MGB we will just be
based on good faith? Mura og dili consistent,” the governor added.
Garcia
explained the Provincial Government is not saying MPSA holders were giving
wrong reports, but for transparency and accountability on the cubic meters or
metric tons extracted from Cebu’s resources, actual volume in the imposition of
tax will be applied, not the processors’ declarations based on the table.
With
that, the governor wants to have some of the provisions of the Provincial
Revenue Code amended. Moreover, Garcia clarified she is not asking MPSA holders
to stop doing business but she is asking them to exercise fiscal and
environmental responsibility for what is due to the Province in accordance with
the ordinance.
“Why
I am asking for this is because we have a very ambitious road concreting and
other infrastructure development program,” she said.
During
the out-of-town session of the Provincial Board (PB) on November 23, Garcia
defended the P15 billion budget for 2021, which was approved on second reading.
In
the session, she told the PB Members that aside from the Internal Revenue
Allotment of over P4 billion, one of the fund sources seen to realize revenues
is the stricter implementation of the Revenue Code specifically Sections 124
and 125. Others present in the meeting were Board Member John Ismael
Borgonia, Provincial Environment and Natural Resources chief Rodel Bontuyan,
and Capitol Consultant Atty. Benjamin Cabrido Jr. (Mylen Manto)
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