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MPSA holders in Cebu to pay 2 percent of fair market price 
By: Mylen Manto | Published Wednesday, December 2, 2020
MPSA holders in Cebu Province agreed to pay to the Province two percent of the local fair market value per metric ton of all extracted non-metallic mineral commodity in accordance to the Provincial Revenue Code. (Junjie Mendoza)

Mining companies holding Mineral Production Sharing Agreement (MPSA) operating in Cebu Province will pay two percent of the local fair market value to the Cebu Provincial Government per metric ton of all extracted non-metallic mineral commodity.

This was agreed by Governor Gwendolyn Garcia, Mines and Geosciences Bureau (MGB) 7 Director Armando Malicse, and the MPSA holders, among others in a meeting Tuesday, November 24.

The meeting was set to define MPSA holders’ positions and obligations to the Province.

“That is why we have called you ang tanang holders of MPSA issued by the MGB, so that we could now define your positions and obligations to the Province insofar as Section 124 of the Revenue Code is concerned,” she said.

MPSA holders fall within the definition of Section 124 of the Province’s Revenue Code as amended, Garcia added.

“Now kaning two percent of the local fair market value per metric ton of all non-metallic mineral commodity extracted, mao na inyo bayran. Unya dili nata according to the table, according to actual volume extracted which will be validated by the issuance of DRs (delivery receipts) kay para duna tay closer monitoring og pila gyud ang volume,” the governor explained.  

Currently, the MPSA holders follow the table provided under Section 125 of the Revenue Code that lays down the number of cubic meters with corresponding annual fixed fee for the extraction of non-metallic minerals.

Garcia said using the table as basis of their annual fixed fee seems unfair to other permittees of the Province. 

“Kay kani man gud, we are all presuming 400,000 and below (cubic meters and metric tons). Kamo (MPSA holders) maoy muingon nga 400,000 and below among volume, mao na among gi report sa MGB but MGB does not actually count truck by truck pila gyud na inyong gi extract. And it is unfair kun mismo ang mga processors nato they are paying by truck,” she expressed.

“What we would like is, if we are subjecting such rigid procedures to our own permittees then we will also impose the same procedures sa uban kay ma subject to abuse man. Unya it is unfair because all of these extractions are within Cebu Province. Why should those that are issued by the Province be subjected to stricter controls and that those permits issued by the MGB we will just be based on good faith? Mura og dili consistent,” she stressed.

Garcia explained that the Capitol is not saying MPSA holders were giving wrong reports but for transparency and accountability on the cubic meters or metric tons extracted from the Province’s resources, actual volume in the imposition of tax will be applied, not the processors’ declarations based on the table. 

With that, the governor wants to have some of the provisions of the Provincial Revenue Code amended. 

Moreover, Garcia clarified she is not asking MPSA holders to stop doing business but she is asking them to exercise fiscal and environmental responsibility for what is due to the Province in accordance with the ordinance. 

“Why I am asking for this is because we have a very ambitious road concreting and other infrastructure development program,” she said.

During the out-of-town session of the Provincial Board (PB) on November 23, Garcia defended the P15 billion budget for 2021, which was approved on second reading.

In the session, she told the PB Members that aside from the Internal Revenue Allotment (IRA) of over P4 billion, one of the fund sources seen to realize revenues is the stricter implementation of the Revenue Code specifically Sections 124 and 125. 

Others present in the meeting were Board Member John Ismael Borgonia, Provincial Environment and Natural Resources (PENRO) chief Rodel Bontuyan, and Capitol Consultant Atty. Benjamin Cabrido Jr. (Mylen Manto)