CEBU, Philippines - At least six mining companies have asked the Capitol to revisit its 2008 Revenue Code that requires excise tax.
The mining companies claimed that they were heavily burned with redundant excise tax and fees that amount to unjust and confiscatory taxation in violation of the 1987 Constitution and the Local Government Code.
“With the increasing competition in the global market and the impending ASEAN integration, the undersigned mining companies are wary of the increase in the cost of doing business in the Pro-vince of Cebu, which consequently increase the price of their respective products,” read the letter addressed to Governor Hilario Davide III.
They cited an incident in September last year wherein a delivery of quarry resources of some of the companies was halted by a checkpoint for failure to present proof of payment of excise tax.
They said that after cordial dialogue with provincial treasurer Emmanuel Guial and Provincial Environment and Natural Resources Office chief, lawyer Chad Estella, it was established that an Implementing Rules and Regulations of the Code is required before payment of the excise tax may be imposed.
“In this connection, we were informed by the Provincial Treasurer and PENRO Officer that a draft IRR was already submitted to your good office, for review and approval,” read the letter.
The signatories are Apo Land and Quarry Corporation Director, Lawyer Alvira Oquendo; Solid Earth Development Corp. operations division manager Delfin Campo; Dolomite Mining Corporation operations manager, Engineer Samuel Tagsip; JLR Construction & Aggregates, Inc. general manager Candice Regner-Neri; Quarry Ventures Philippines, Inc. manager, Engineer Reynaldo Paz; Lafarge Republic, Inc. representative, Lawyer Anda Bolinas.
Davide endorsed the matter to the Provincial Board.
The PB committee on ways and means chaired by Board Member Thadeo Ouano confirmed that the draft copy of the IRR of the Code was already indorsed to the Provincial Legal Office for review on November 18, 2014 and subject for final approval by the Governor.
Ouano, however, said the committee cannot fully dispose of the matter as its authority to act is limited only to issues relating to revenues in general, taxes, fees, loans and other sources and forms or revenues and in general the formulation of policies relating to the raising of funds.
“This issue submitted requires legal qualifications by which the committee respectfully acknowledges lies within the province of competence and expertise of the committee on laws and review of ordinances,” Ouano said.
This prompted the PB to refer the matter to the committee on laws and review of ordinances chaired by Board Member Joven Mondigo Jr. for further study. (FREEMAN)