N. Vizcaya gains more tax income from mining firms

BAYOMBONG, Nueva Vizcaya — More taxes will be collected by this province as Gov. Luisa Cuaresma here recently signed into law a tax ordinance which will increase taxes to be exacted on mining areas.

Tax Ordinance 2012-003 seeks to increase by 100 percent the real property taxes that will be collected from mineral-rich areas, including those covered by two existing large-scale mining projects in the province.

The ordinance sets four classifications for ore-rich areas. Areas classified as mineral production sites will be taxed according to the volume of minerals extracted by the companies.

“This measure intends to ensure that we will collect the proper benefits for our province from the existing mining projects,” Cuaresma said.

The new ordinance which will take effect this year will have an effect on the real property tax obligations of two big ticket mining projects such as the Australian mining companies OceanaGold Philippines Inc. and FCF Minerals Inc.

Oceana Gold is presently conducting gold-copper mining operations in Barangay Didipio in Kasibu town while FCF is doing exploratory activities for its gold-molybdenum project in Barangay Runruno in Quezon town.

Cuaresma also said that the crafting of the tax ordinance was made because of the impending operation of these two large-scale mining firms and there are provisions of the tax code that covers these mineral areas.

Citing records from the Provincial Treasurers Office (PTO), she said that a number of lands encompassed by the Oceana Gold mine site in Barangay Didipio are agricultural lands which valued at R35,000 per hectare.

Only 128 parcels of land in these mineral-rich areas have been declared qualified for real property examination and taxation that generated R1.2 million in revenues this year, the governor said. -- PIA