Benguet small scale miners urged to sell gold to BSP, Pay excise tax to BIR

February 17, 2018 Headlines

ITOGON, BENGUET – Small-miners in the province were told to sell their gold to the Bangko Sentral ng Pilipinas (BSP) and pay excise tax to the Bureau of Internal Revenue (BIR).
Itogon Mayor Victorio Palangdan and Engineer Lomino Kaniteng, president of Benguet Small-Scale Miners Federation (BSSMF), made the call during a consultation with small-scale or “pocket” miners held recently in Sitio Abeo Duclos in Barangay Tuding.
The consultation was primarily to inform the local pocket miners and the residents about the so-called “Minahang Bayan” (the people’s mine), the government’s tax administration programs, and on the Comprehensive Land Use Plan (CLUP), which the municipality of Itogon is undertaking.
Palangdan urged his constituents, especially the pocket miners, to comply with government regulations to avoid penalties and possible criminal liabilities.
Likewise, the mayor informed local pocket miners about a letter his office recently received from the regional offices of the National Bureau of Investigation (NBI) and the BIR, stating that a joint task force was formed to go after tax evaders and small-scale mining was among the target of the operation.
Earlier, the mayor admitted that since the BIR increased the creditable withholding tax from 2 percent to 5 percent, local small-scale miners have stopped selling gold to the BSP and have been, instead, going directly to the “black market”, depleting the country’s gold reserves.
He emphasized that taxes paid are plowed back to finance government development projects, such as infrastructure, roads, including farm-to-market roads, school buildings, health facilities, and services.
Benguet’s pocket miners’ leader Kaniteng shared the mayor’s opinion and likewise urged his fellow pocket miners to comply with the law.
“It is high time they (pocket miners) sell their gold to BSP because the moment they pay excise tax, 40 percent of it will go back to the local government unit, which will be shared among the province, municipality, and barangays,” he said.
Kaniteng added, “Sellers of gold have to file their income tax and buyers of gold are now the agent of the government to collect the excise tax from the sellers.”
Under Section 4 of the Revenue Regulation 7-2017, specifically of the Mode of Collection and Payment of Tax, it says, “All buyers of metallic minerals are hereby constituted as agents for the collection of the 2 percent excise tax on metallic minerals and the 5 percent creditable withholding tax thereon.”
The regulation further states, “However, the BSP, as a constituted agent, shall only collect the 1-percent creditable withholding tax on its purchase of metallic minerals and the 2 percent excise tax due thereon.”
Kaniteng pointed out that in Itogon, 56 percent of the land area is classified as forest land, 41 percent as mineral land — mostly operated by large mining companies Philex Mines and Benguet Corp. — and the remaining 3 percent is agricultural land.
The Minahang Bayan is within the 41 percent of the declared mineral land, Kaniteng said.
He reported that applications for the Minahang Bayan are “mostly finished” and are being screened by the Provincial Mining Regulatory Board as one of the requirements before a small-scale mining permit is issued.
Under the New Mining Act, small-scale miners have to be under the Minahang Bayan program to be legalized.
The scheme, based on the law, aims “to regulate the small-scale mining industry, with a view of enhancing its growth and productivity, as well as ensuring environmental protection; and to provide technical, financial, and marketing assistance; ensure efficient collection of government revenues; adopt best practices; and promote good governance and integrity in the industry.” PRIMO AGATEP, PNA / ABN