DENR simplifies release of shares to LGUs hosting mines

CEBU, Philippines - The Department of Environment and Natural Resources has recently approved Joint Circular No. 2009-1, which simplifies the procedure in releasing the tax shares of local government units that are hosts to mining projects.

The new policy is seen to provide additional sources of revenue for local development programs and projects of LGUs concerned.

JC 2009-1 streamlines the procedures in downloading mining taxes and is created and approved by the DENR, Department of Finance, Department of Budget and Management and the Department of Interior and Local Government.

The policy is in accordance with the vision of the government for a shared natural wealth among Filipinos especially among those in the countryside.

Already provided in Section 290 of Republic Act 7160 or the Local Government Code, LGUs are entitled to a 40 percent share from the gross collection derived from mining taxes collection of the national government.

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

“The circular pointed out that the 40 percent share of LGUs from mining tax collections in the preceding fiscal year shall be released chargeable against the current year’s general appropriation of the government,” according to DENR.

The circular also specifies the distribution of the 40 percent share.

The DENR explained that if the mining activity in a province affects a municipality and a barangay, the province gets a 20 percent of the 40 percent. The 45 percent will go to the municipality and 35 percent to the barangay.

If the mining operation is being conducted in a highly urbanized or independent city affecting one of its barangays, the city gets the 65 percent of the 40 percent share while the barangay gets the 35 percent.

Concerned agencies must keenly observe deadlines for the processing and submission of documents required to facilitate the downloading of mining taxes to the local government.

The role of DOF is to submit to the DBM the projected mining tax to be collected for the current year and the corresponding 40 percent share of the LGUs on or before March 15 every year.

The DILG must prepare and submit to the Bureau of Internal Revenue the validated list of actual extraction sites of all non-metallic mineral products not later than May 15.

DILG must also enjoin all local executives to ensure submission by mine operators the quarterly production and sales report from the Mines and Geosciences Bureau regional offices.

Likewise, the MGB must furnish the estimated volumes and values of metallic mineral production of mining companies for the current year to the BIR. — Jessica Ann R. Pareja/WAB (THE FREEMAN)