Court Bars LGU Attempt to Levy P397M Tax From SMI
Wikimedia Creative Commons
KORONADAL CITY – The tax court blocked the local government unit’s attempt to levy P397 million worth of tax from a mining firm.
The Court of Tax Appeals, in an August 10 resolution, said it is absolutely improper for the local government unit of South Cotabato’s Tampakan town to collect such an amount as “tax” from the Sagittarius Mines Incorporated (SMI) that has not even operated yet since municipal tribal leaders had allowed its entry in 1995 to their ancestral land.
A Blaan leader, Domingo N. Collado, Indigenous People’s Mandatory Representative (IPMR) to the Tampakan municipal council, told reporters Sunday their tribe is happy with the CTA’s action on SMI’s petition for its intervention on the issue.
“This for us is a big blessing. It seems there are no more obstacles to our longtime dream of having the gold and copper deposits in our ancestral lands explored for our benefit,” Collado said.
The Blaans in Tampakan and the National Commission on Indigenous People (NCIP) had long provided the SMI with separate written clearances for its operation in the area.
Experts have estimated no less than 15 million tons of copper and 17.6 million ounces of gold.
The multi-sector Regional Development Council 12 (RDC), chaired by Cotabato Governor Emmylou Taliño Mendoza, had said in a resolution last June that besides the foreseeable huge amounts of taxes that the Tampakan LGU, the South Cotabato provincial government, and the national treasury can earn from mining operations, the venture can also generate employment for thousands for about 40 years.
The SMI, contracted by the national government to operate the Tampakan Copper-Gold Project, also enjoys the support of the influential Mindanao Business Council (MBC).
The Tampakan LGU issued last month a business permit for SMI for only P24,000 failing its attempt to levy P397 million for the document.
About Author
