Opening speeches in the morning, then two focused group discussions in the afternoon. We were on the 3-5pm slot.
This is my presentation, 28 slides total, showing 7 of them here.
After showing various tables on comparative taxation in the region, I asked the audience of this question. About 4 hands were raised to say True, none raised hand to say False, the majority just waited for me to answer my own question.
The 3 pitfalls are (a) deadweight loss, (b) declining revenue in a Laffer curve, and (c) non-recognition of the "multiplier effect" of mining as raw materials.
I discussed the various bureaucracies in the power/energy sector, and the mining sector, the multiple taxes, royalties, fees, mandatory spending such as SDMP, and yet...
Reflecting on those tables shown earlier...
I showed 4 annexes -- mining taxation in Vietnam, Indonesia, China, and this proposal.
My full presentation is available in slideshare and in dropbox.
The UP Miners, an organization of Mining Eng'g undergrad students in UP Diliman, made this photo and posted it in fb. Thanks Niel and all.
Meanwhile, I like these comments from two friends, Yani and Raul.
Bayani Camitan: noy, we have very much potential in this
industry. in fact mining industry was a significant (if not today in the
future) contributor to GDP. but then again, it is sad to say that government
support is lacking and related policy is unclear. for one, we have as u may
know Surigao (which is partly known for surfing) is the so-called
"nickle-ore capital of the Philippines". it is one of the main
supplier exporter of nickle ore competing against Indonesia for China market.
unfortunately the mining players in Surigao do NOT have a centralized
laboratory for nickle ore testing; each of them has their own way to cheat if
not hide the characteristics of this mineral ore. an act of one will spoil the
whole of it. if only government could support and have a government-instituted
laboratory which should be a common facility for about 14 mining companies in
Surigao alone, with this guess we can be recognized in the world for this
mineral ore.
Raul De Leon: That's the problem with government
thinkers! Everytime they see an industry grow, the first thing they think of is
to increase taxes instead of improving the collection system. Just like they
did in the mid 90s when they saw the stock market boom. They imposed higher
taxes on trades that lead to investors shying away from our market and invest
else where. This wrong mindset of increasing taxes out of a booming industry
has Instead yielded negative results to all stakeholders especially the
government who has lost a lot of opportunities and losing to our asian
neighbors by giving less incentive, more government involvement and lesser
investor facilities.
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See also:
Mining 41: Presentation at the UP MINERS Forum, September 21, 2014
Mining 42: Presentation and Debate at UP PALS-NCPAG, November 14, 2014
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