Benefits and Opportunities in Mining
Mining has immense potential as a major economic driver for the Philippines. It provides dividends, and taxes that pay for hospitals, schools, and public facilities, as well as generate employment.
BENEFITS AND OPPORTUNITIES FOR THE INDIGENOUS PEOPLES:
- Recognition and respect for their rights, customs and traditions.
- Where consent is granted, IPs are entitled to a minimum royalty of 1% of the gross output.
- The Philippine Mining Act also provides enough social safeguards. A major provision is to require mining permittees/contractors to assist in the development of mining communities and promotion of the general welfare of the inhabitants, by requiring the following:
- – Creation of livelihood opportunities to attain community self-sufficiency.
- – Annual allocation of minimum of 1% of the direct mining and milling costs to undertake/ implement the company’s Social Development and Management Program (SDMP). The SDMP covers the following:
- Health Care
- Education
- Livelihood and Employment
- Public Infrastructure and others
Environmental Protection and Enhancement
- Ensuring healthy environment to the communities
- Environmental protection measures
– Comprehensive implementation as a major requirement the Environmental Protection and Enhancement Program
– Environmental Management Systems (ISO Certified)
– Progressive Rehabilitation
– Planning for closure and beneficial use of land after mining
Development of Local Community
- A catalyst for the development of remote and uninhabited areas.
– Induces greater economic, social and cultural development
– Increases revenues helping the LGUs provide services to their constituencies
– Generates exports and foreign exchange reserves
– Helps provide jobs and through its multiplier effects generates employment and income opportunities
– Helps reduce poverty that remains to be the greatest challenge of the government
Fiscal Contributions of the Mining Industry
Payments to National Government
- Excise Tax – 2% of gross output
- Contractor’s Income Tax – 30% of taxable income
- Customs Duties and Fees
- Value Added Tax on Imported Equipment, Goods and Services
- Royalties in Mineral Reservations
- Documentary Stamp Tax
- Capital Gains Tax
- Tax on Interest Payments to Foreign Loans
- Tax on Foreign Stockholders Dividends
Payments to Local Governments
- Local Business Tax
- Real Property Tax
- Registration Fees
- Occupation Fees
- Community Tax
- Other Local Taxes – depends on LGUs
Other Payments
- Special Allowances
- Royalty payments to Indigenous Peoples
- Royalty payments to surface owners and claim owners
Non-Fiscal Contributions
- Development of host and neighboring communities
- Promoting the general welfare of inhabitants
- Creation of livelihood opportunities; assistance to education, health, peace and order, etc.
- Annual commitment of a minimum of 1.5% of operating costs or 10% of EnWP budget
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