New rule on mining taxes to boost LGUs' economy

MANILA, Philippines - Environment and Natural Resources Secretary Lito Atienza said local government units hosting mining projects will soon reap the full benefits from the development and utilization of their natural wealth with the recent approval of a joint circular streamlining the procedures in downloading mining taxes.

“The LGUs have long been anticipating the approval of the new policy as it will provide them additional sources of revenue for their local development programs and projects,” Atienza said.

The simplified procedure is contained in Joint Circular 2009-1 approved on March 31, 2009 by the DENR, Department of Finance (DOF), Department of Budget Management (DBM) and the Department of Interior and Local Government (DILG).

Atienza said the new policy will likely result in improved community relations of the concerned mining companies as the communities will now realize the importance of mining in their economic life.

“The simplified procedure in releasing the tax shares of LGUs hosting mining projects is an important component of the government’s rationalization program for the mining industry,” Atienza said.

Section 290 of Republic Act (RA) 7160 (Local Government Code) and its implementing rules and regulations provide that LGUs are entitled to a 40-percent share from the gross collection derived from mining taxes collection of the National Government during the preceding fiscal year.

Under the joint circular, the concerned national agencies shall establish and share among themselves on a timely basis, information and an updated database to facilitate the exchange of information needed for the smooth and reliable processing and release of tax shares of LGUs.