[ Manila Bulletin Online ] August 16, 2008
By DEXTER A. SEE
For hosting large-scale operations of mining companies
TUBA, Benguet – Communities hosting the operation of large-scale mining companies in this vegetable-producing and mineral-rich province are now starting to enjoy additional revenues with the release of their shares from the income of mining companies in the past several years.
Two towns, two barangays, and the provincial government stand to receive a total of R49 million as share from the national-wealth tax paid by Philex Mining Corp. here in the first quarter of 2005 and the first three quarters of 2006.
The Local Government Code grants local government units (LGUs) a 40 percent share from the national wealth tax paid by companies exploiting natural resources in their areas, but the release of the funds requires the approval of the Department of Budget and Management (DBM).
For several years now, the national government has not been prompt in releasing the shares of local government units from the national-wealth tax.
As a result, the host communities were deprived of the opportunity to use the funds for projects aimed at improving the living condition of the people in the affected areas.
The towns of Tuba and Itogon, both in Benguet, received more than RR11 million each from the national-wealth tax paid by the mining company, while Barangays Ampucao in Itogon and Camp 3 in Tuba got more than R8.6 million each.
The provincial government got more than R9.8-million share from the national wealth tax, which it would utilized for the implementation of various impact projects.
Tuba and Itogon, together with their barangays, will temporarily receive equal shares from the taxes paid by Philex, pending resolution of a dispute over which municipality has the jurisdiction over the area where the mining company is conducting its operation.
Of the RR50-million national-wealth tax paid by the company, Rizal Province had received RR1 million for hosting the firm’s main office, while the P49 million was divided among the Benguet provincial government, Tuba and Itogon towns, and Barangays Camp 3 and Ampucao.
Local officials are confident that the national government will again release their respective shares from the national wealth tax paid by Philex for the last quarter of 2006 and the first three quarters of 2007.
The release would enable the LGUs to implement immediately their priority projects for the people.
