Mining review sets off fierce debate.

INQUIRER.net
Agence France-Presse
March 12, 2012

A government bid to take a greater share of mining revenues amid the global commodities boom has set off a storm of debate, with the industry mounting an intense campaign to knock it down.

President Benigno Aquino III had intended to sign an executive order (EO) endorsing the regulations to raise taxes on the mining sector at the end of last month, but delayed it as opposition mounted from the industry’s biggest players.

Nevertheless, Finance Secretary Cesar Purisima, a key driver of the plan, has continued to insist that Mining Inc. does not pay enough taxes and that other reforms are needed to improve what is a chaotic and often unregulated industry.

“In the past, the way the laws were implemented, it was not a true win-win situation where the government was able to get its fair share from mining activities,” Purisima said shortly after the deadline for the signing of the EO passed.

Purisima told reporters the government collected a mere P2 billion ($47 million) from the industry in 2011—just 0.17 percent of  the P1.2 trillion in national tax collection.

“You really have to ask yourself whether the way we’re implementing (mining policy) is a responsible way of harnessing the wealth of the country,” he said.

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