It’s about time for mineral processors, traders, crush operators and retailers to respect the Cebu Provincial Government’s ordinance setting the coverage of tax on minerals, sand, gravel, and other quarry resources.
Governor Gwendolyn Garcia expressed this after sand and gravel retailers complained during their meeting on Monday, November 9 that they already have an accreditation from the Mines and Geosciences Bureau (MGB) 7.
However, she pointed out that MGB 7 is a national agency that collects fees but will never be responsible for the infrastructure projects to improve lives and livelihoods of constituents in the Province of Cebu.
“Dili na ang MGB maoy magpahimo ug magpasemento sa mga dalan nga agi-an sa inyong mga truck. Dili na magbutang og patubig nga kon tua mo didto sa kalungsuran maarang-arang na kay 24 hours na inyong tubig. Dili na ang maghimo sa mga flood control ug mag-ayo sa mga drainage, ug maghimo sa mga slope protection kay dili man ang MGB maoy mogasto sa Probinsya. Ang Probinsya man maoy mogasto sa Probinsya,” she added.
The governor dispelled the notion that MGB accreditation is equivalent to the Governor’s accreditation.
“MGB is not the Provincial Government. Whether you are a holder of an MPSA (Mineral Production Sharing Agreement), ISAG (Industrial Sand and Gravel Permit), mineral processing permit or crusher operator ka, retailer, or hauler, basta nahilakip diha ang negosyo sa bato or any other mineral or quarry resource himoan nato og klaro nga patakaran,” Garcia said.
“So kinahanglan nga tagaan sad og igo nga respeto ug pag-ila ang Provincial Government of Cebu. Mao na kamo mga retailers mokuha mo og accreditation kay nia man mo sa Probinsya sa Cebu. Samtang nia mo sa territorial jurisdiction sa Province of Cebu, atong sundon ang Provincial Ordinance (2008-10),” she added.
In Section 211 of Provincial Ordinance 2008-10 or the Revenue Code of Cebu defined the requirements for the provincial accreditation.
These include proof of legal sources of supply, list of accredited hauling trucks, business permit, Environmental Compliance Certificate or Certificate of Non-Coverage for mineral processors, and Department of Trade and Industry or Securities and Exchange Commission registration, among others.
Companies must also pay the P2,000 accreditation fee, P100 filing fee, and P5,000 verification fee for a total of P7,100.00
Garcia told the retailers to ensure their sources of sand and gravel, and other minerals if they, too, are paying the necessary fees imposed by the government.
“Kay kon wala na nagbayad, dili na legal. Wala na mosunod sa Provincial Ordinance. In other words, illegal. Unya kamo kon nagpalit mo sa usa ka illegal nga source, illegal sad mo, illegal pud inyong operation. Kahibawo baya ta tanan nga anti-fencing na. Mopalit mo og kinawat, magpareha na man lang na,” she said.
The governor cited Philippine Mining Service Corporation (PSMC), a mine resources processing company in Alcoy town, as an example.
Despite having an MPSA, PSMC has to settle its tax revenues or a total of P1.9 billion to the Cebu Provincial Government, she said.
“Ako ning ihemplo ang PMSC sa Alcoy, among giingnan ‘bayad mo, nalakip mo aning Section 124.’ Miingon sila ‘wa mi labot kay MPSA ni nya duna mi mineral processing permit from MGB’ pero klaro man kaayo nang balaud ‘issued by entities other than the Province of Cebu’ bayad gihapon og 10 percent sa local fair market value sa ilang gibaligya nga dolomite unta na pero karon ilang gibaligya as sand and gravel,” Garcia explained.
Section 124 of the Revenue Code states that a 10 percent tax of the local fair market value per cubic meter is imposed on “all ordinary stones, sand, gravel, earth, and other quarry resources as defined in Section 181 hereof, extracted on public lands within the territorial jurisdiction of the Province of Cebu, including holders of permits, licenses, contracts or agreements issued by entities other than the Province of Cebu; provided, holders of gratuitous permits issued by the Province of Cebu shall be exempt from the payment of this tax.”
Garcia said this is the reason for the cease and desist order the Capitol issued to PMSC.
She added that she’s informing the companies about this to express the Capitol’s commitment on tax collection as its proceeds will benefit the Cebuanos.
“Kay dili man ni para sa akong bulsa; 30 percent ani moadto sa Probinsya, 30 percent share sa lungsod, 40 percent sa Barangay Pugalo niining P1.9 billion nga kolektahon,” she said.
The governor disclosed that the Province is ready to file tax cases to PMSC which has been in Alcoy for 40 years now yet the town remained to be a 5th class municipality.
“Igo man lang sila mobayad og business permit, ang DMC (Dolomite Mining Company), ang tig-extract. Maayo lang og moabot og one million kapin [pesos] a year. So napasagdan ni. Karon we are ready to face them bisa’g hain pa. Pero kami mouna’g file nila og tax case,” she said.
“It’s time nga tagaa’g respeto ang Probinsya kay Probinsya maoy nag-problema sa tanang problema sa Probinsya. Dili ang ubang ahensya kay igo ra na mokolekta,” Garcia added.
Section 210 of the Revenue Code also states the fees to be collected for the filing of application and issuance of the Governor’s Accreditation.
These fees include P50 printing cost of coded sticker for every applied processing plant and hauling truck/equipment, dealers and traders, and P100 per year as filing fee for the Application for Governor’s Accreditation.
Governor’s Accreditation Fees include P2,000 per year for cement plants, pulverizing plants, marble plants, crushing plants, batching plants, and similar plants, as well as land developments such as subdivisions, memorial parks, commercial centers, industrial parks, and the like that require earth and other materials.
Backhoes, cranes, bulldozers, payloaders and similar equipment, as well as hauling trucks with 10 cubic meters and above capacity have Governor’s Accreditation Fee of P1,000 per year; hauling trucks with six to nine cubic meters capacity at P750 a year, and hauling trucks with five cubic meters and below capacity, as well as potteries and cement products production and quarry toll way at P500 a year. (Eleanor Valeros)