Sand, gravel haulers to pay ‘extraction’ tax
Lorraine L. Ecarma (The Freeman) - December 9, 2019 - 12:00am

CEBU, Philippines — The Cebu provincial government will now impose a so-called “extraction tax” on operators who extract sand, gravel and quarry materials in the province.

Sugbo TV reported that according to Cebu Provincial Treasurer Roy Salubre, P48 will be collected from quarry operators per cubic meter of extraction. This is on top of the permit fees that the operators are already paying.

In imposing the tax, Governor Gwendolyn Garcia cited Section 138 of the Local Government Code which states that the province is allowed to collect taxes on public quarry resources.

“The province may levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National Internal Revenue Code, as amended, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction,” Section 186 of the LGC reads.

“The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the provincial governor, pursuant to the ordinance of the sangguniang panlalawigan,” it adds.

Subsequently, 30 percent of the proceeds, as provided by the Local Government Code, will go to the province, 30 percent to the city or municipality, and 40 percent to the barangay.

Salubre also went on to say that the extraction tax is separate from the Mineral Production Sharing Agreement (MPSA) that is issued by the Department of Environmental and Natural Resources (DENR) secretary.

He elaborated by saying that the MPSA holders were not paying extraction taxes to the province.

The MPSA is one of the three kinds of Mineral Agreements under Republic Act 7942 or “The Philippine Mining Act of 1995”.

It is a form of agreement wherein the government, the owner of the minerals, shares in production of the contractor who provides the means for the extraction of minerals.

The Mines and Geosciences Bureau (MGB) Central Visayas has also expressed support to Garcia’s move to collect taxes on the quarry operators.

MGB promised the governor to furnish a copy of active operators out of the 31 that were granted MPSA. (FREEMAN)

EXTRACTION TAX
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