Plenary received the presented bill seeking tax exemptions to small-scale miners who sell their gold to the Bangko Sentral ng Pilipinas (BSP) by the senate’s way and mean committee.
Senate Bill No. 2127 aims to amend Sections 32 and 151 of the National Internal Revenue Code (NIRC) which will lead to the income and tax exemptions to registered small-scale miners and accredited traders on gold sales to the BSP.
“I strongly urge the honorable members of the Philippine Senate to approve the passage of this ‘Gold Bill’ to ensure the strength of the country’s gross international reserves and promote the Philippines’ greater monetary and external sector stability,” said committee chair Senator Juan Edgardo M. Angara in his sponsorship speech.
On October 8, 2018, its counterpart measure, House Bill No. 3297, was already approved on third and final reading.
Sen. Sonny Angara considers the proposed bill as a suitable move for both the central banks and small-scale miners as it would help the BSP to increase the gross international reserves (GIR) of the country by supporting the development of the small-scale mining industry.
Angara also believe that the suggested measure, through the buying of domestically-produced gold, the BSP can build up GIR which had its lowest level ever since 2011 after the indicator fell in October 2018 to $74.8 billion.
Aside from that, the passage of this bill will also mean small-scale miners will be ensured to a fair price for their gold avoiding the possibility for them to turn to the black market.
In accordance with Republic Act No. 7076 or the People’s Small Scale Mining Act of 1991, the BSP buys gold from small-scale miners aside from other sources. By December 2018, GIR of the country amounted to $78.461 billion, according to the central bank. The value of its gold holdings was worth $8.154 billion the same month.
