10 senators OK Escudero proposal to double tax rates on mining firms
After a heated debate, majority of senators voted on Monday night to double the tax rates on mining firms.
Ten senators voted in favor of Senator Francis Escudero’s proposal to double the tax, two were against it while three abstained from voting.
It was Senate President Ralph Recto, who initially made the proposal after learning during plenary debates on the proposed tax reform measure that the total revenues being collected from the mining industry amounted to P1.8 billion only.
“We’re only collecting P1.8 billion so my proposal to double it is so low. We will just collect an additional P2 billion,” Recto said.
But Recto withdrew his proposal after Senator Sonny Angara, who is defending the tax reform measure as chairman of the Senate committee on ways and means, asked that the panel be given time to deliberate on the proposal.
It was Escudero, who pursued Recto’s proposal. Angara then called for a nominal voting.
Before voting on the issue, some senators stood up to manifest their position on the issue.
“We also wish to correct the lopsided-sharing of non-metallic mineral mining proceeds in the country,” Senator Joel Villanueva said.
Compared with neighboring counties like Vietnam, Indonesia and Papua New Guinea, he said, the Philippines has one of the lowest tax rates on mining with only two percent.
Senator Grace Poe also believes that raising the tax on mining would not “kill” the industry.
“I think this is one particular sector that definitely there is room for expansion in terms of taxes. If we need to discourage certain practices and we don’t really want to encourage too much mining in our country right now here’s your answer,” Poe said.
Besides, even if consulted, Poe expressed doubts that the mining firms would agree to raise their taxes.
“Even if we’ve had a committee hearing on this, in the end, we decide what in our conscience, at least our conscience should be our guide as to what we feel is best for our people,” the lady senator added.
