Should mining taxes be raised?

MANILA, Philippines – The 2013 Mining Conference opens today, highlighting a key issue: whether or not taxes that mining companies pay should be raised.

Judith Balea reports.

FRANKLIN DRILON
SENATE PRESIDENT
Taxes in whatever form are always met with deep resentment and criticism. Life as they say there are only two things we cannot avoid: death and taxes.

How much should miners be taxed?
The debate continues as government crafts a bill that will restructure the current tax system.
The bill wants to give the state its fair share in mining revenues.

Citing mining’s high social and environmental costs, Senate President Franklin Drilon vows Congress will find common ground.

FRANKLIN DRILON
SENATE PRESIDENT
People must have fair share of the country’s worth in the form of taxes. How fair is fair the question may be asked. We will exert every effort to determine what is fair to your industry and what is fair to your people.

But the mining industry stands its ground.

BENJAMIN ROMUALDEZ
PRESIDENT, CHAMBER OF MINES OF THE PHILIPPINES
Our companies are responsible stewards of the environment and perfectly in tune with the cry of the times. Truth is, our government receives over half of the total value of a mining project based on the internationally accepted AETR or the Average Effective Tax Rate.

Romualdez says uncertainty over a new tax measure is keeping investors away.
But he says the government must first realize what the real contribution of the industry is to the economy.

BENJAMIN ROMUALDEZ
PRESIDENT, CHAMBER OF MINES OF THE PHILIPPINES
If they truly understand these issues they will probably come to a realization that their initial position might have been erroneous. If they can at least understand that then maybe there is some chance to arrive at a common ground.”

Drilon says there’s no timetable for the measure but proposals are underway at the lower House.
While the debate on what is fair for all goes on the mining industry remains at a standstill.
Judith Balea, Rappler, Manila. – Rappler.com