MANILAThe House of Representatives on Monday approved on final reading a measure exempting small-scale gold miners from paying income and excise taxes.
With 192 affirmative votes, four negative and one abstention, the Lower House passed on third reading House Bill 3297, which aims to strengthen the country's gross international reserves (GIR) by encouraging small-scale gold miners to sell to the Bangko Sentral ng Pilipinas (BSP).
The proposed tax exemption would help return the sale of gold from small-scale mining to the formal sector.
The bill seeks to amend Section 32 and 151 of Republic Act 8424, or the National Internal Revenue Code.
The bill also aims to support the trade of small-scale miners pursuant to the People's Small-Scale Mining Act.
The measure mandates that the income derived from the sale of gold to the BSP by registered small-scale miners, as defined under RA 7076 and accredited traders, as well as the sale of gold by these miners to accredited traders for eventual sale to the BSP shall not be included in gross income and exempt from taxation.
The gold sold or eventually sold to the BSP shall further be exempted from the payment of excise tax. A taxpayer who had paid excise tax before the sale of gold to the BSP may file a claim for refund or credit with the Internal Revenue Commissioner for the excise tax paid.
The sale of gold by small-scale miners to traders for eventual sale to the BSP shall also enjoy the same tax treatment and privileges given to the direct sale of gold to the BSP.
All gold sold to the BSP by accredited traders shall be presumed to be purchased from small-scale miners. (PNA)
Source: Philippine News Agency