AT least 10 mining companies have expressed willingness to pay taxes under the proposed scheme of the Mining Industry Coordinating Council (MICC).
Environment Secretary Ramon J.P. Paje said most of these mining companies want to move on and have their contracts signed.
“These companies already have mining feasibility studies and environmental clearance certificate,” Paje told reporters in a media briefing on Monday.
He, however, declined to name the said companies that are willing to shoulder the taxes based on the proposed MICC scheme, which could either be a 10-percent tax on gross revenues or a 45-percent to 55-percent tax on adjusted mining revenues plus a percentage of their windfall profit. Paje said most of these companies operate nickel mines.
“With these mining companies agreeing to pay taxes as proposed by the MICC, it only shows that our computation is right,” he said, adding that the tax scheme proposed by the council is competitive, contrary to the claims of the Chamber of Mines of the Philippines (CMP).
The country’s nickel production has been in the upswing in the past several years. It has, for several times, topped gold and silver production because of the favorable price in the market.
Paje said a joint resolution he signed with Finance Secretary Cesar V. Purisima, who recommended the implementation of the MICC tax scheme, is awaiting the approval of PresidentAquino.
“The resolution is now being studied by the President,” he said.
Asked whether this will violate the revenue code, Paje said: “As long as you pay higher than the tax expected of you, there will be no problem.” Paje said no new mining contracts will be approved by the Department of Environment and Natural Resources (DENR) unless a new tax measure that will increase the government’s share in mining has been put in place.
While waiting for a new mining tax measure to be enacted into law by Congress, Paje said that with the approval of Mr. Aquino, the DENR can approve new mining contracts with companies that are willing to pay under the conditions set by the MICC.
Mining companies under CMP oppose the MICC tax proposal,saying that it will “literally kill” the industry. They said the existing tax scheme itself is already a big burden to mining companies, as more than 60 percent of their gross revenues go to the government.