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Smugglers now control 95% of Philippine gold trade

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The local gold trade is now almost completely in the hands of black market operators and the country’s central bank—the agency tasked with buying the precious metal from miners—is completely powerless to stop it.

This was disclosed by an official of the Bangko Sentral ng Pilipinas in a recent talk with reporters, who pointed out that the central monetary authority has neither the necessary resources nor the mandate to prevent gold smuggling.

“We can’t stop smuggling,” BSP Assistant Governor Manuel Torres said in a forum in Quezon City. “The BSP has no police powers to stop such illegal activities.”

The official, who oversees the operations of the central bank’s mint, refinery and printing operations in Quezon City, said that as much as 95 percent of gold trade in the Philippines is now made through the black market.

The amount corresponds to the drop in the volume of gold sold by traders and small-scale miners to the central bank after authorities started collecting a 7-percent tax on gold sales—consisting of a 2-percent excise tax and a 5-percent creditable withholding tax—since last year.

Under the law, the BSP is required to buy all the gold from local producers. Since the BIR imposed the tax at the point of sale, however, gold traders have shied away from the BSP, with most choosing to sell their precious metals to smugglers who do not impose excise taxes.


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Tags: Business , gold trade , Mining and quarrying , Philippines , smugglers

  • http://pulse.yahoo.com/_4C2SFYIH52Y2KR7QPZPHJO2XQQ sl1

    This should not happen if our law enforcer is doing there job well. If they do there job and mean business there is no reason why smugglers can still continue to operate. Remove the scalawags in the police force and hire good people then everything will come to order..less smuggling and criminality in the country.

  • daniboy2012

    Mga indot na mga smugglers…..economic saboteaurs!….ano ba ibalik na ang parusang kamatayan…o kaya …itumba na lang on the spot ang mga yan…mga makasarili!!! walang pagmamahal sa bayan!

  • http://profile.yahoo.com/2I5Z6CAZKOTTPZEHG4LFXYUFFA dudes

    Kaya halos walang pag asenso ang mga small scale miners dahil sa malaking tax na ipinataw nang BIR na buwis

  • http://pulse.yahoo.com/_2WTTL6FMGU4D7YZQNHAXBVO2DU Betz Chui

    This is what will happen to cigarettes and alcohol as well….not because you can impose a 1000% sin taxes that you should do it! Might as well make it 1 billion percent….idiots in government abounds…

  • Spokesman2

    and who is to blame?
    the fat singing lady henares
    and Gina Lopes new poodle named Paje

  • kalikasanipagtanggol

    “We can’t stop smuggling,” BSP Assistant Governor Manuel Torres said in a
    forum in Quezon City. “The BSP has no police powers to stop such
    illegal activities.” 

    What a pathetic statement coming from supposed to be very intelligent executive of BSP. Ano na nga ba ang kasabihan na “kapag gusto may paraan kapag ayaw marami dahilan”

  • http://twitter.com/ThebestofJP Jerwin Mancenido ™

     95% talaga huh at wala paring nagagawang paraan.. baka gusto pa nilang gawing 100% bago aksyunan.. para naman sa lahat yan kaya dapat ma-aksyunan na.. SOBRANG SOBRA NA



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