Significantly, the income loss does not include the potential income from mineral production sharing agreements (MPSAs), 75 of which were canceled by Lopez in a second order; the foregone revenues from those very likely could be worth billions of pesos. Under the 1995 Mining Act, local governments benefit from mining in their jurisdictions through real property taxes, local business taxes, mayor’s permit fees, regulatory and administrative fees, and occupation fees. The local government units are also entitled to a share of mining taxes collected by the national government; the loss for this alone will amount to P481.17 million. In addition to all these income streams, the provinces where mining operations are located also collect governor’s permit fees, environmental fees, taxes to offset soil depletion, and where applicable, processing permits for sea vessels to carry away mined ore. It should be emphasized that the financial loss is not a one-time charge against local budgets, but is an annual shortfall that will burden local governments unless and until something replaces mining as an income source.

Source: Manila Times February 21, 2017 16:46 UTC