News & Updates

Pangasinan collected unprecedented gross tax from quarry products in 2024, pushes provincial revenues to record PhP6 B plus

LINGAYEN, PANGASINAN — The increase in revenues from quarrying pushed the province’s total revenue collection for the year 2024 to an unprecedented P6.6 billion plus whichalso meant increased incentives to all provincial employees.

The Capitol reported an overwhelming gross tax collection on sand, gravel, and other quarry products amounting to PhP235,575,494.26. The increase in collection will support vital priorities like improved education, infrastructure, public health, and public safety.

It also supported the Service Recognition Incentive (SRI) forpermanent and non-permanent employees of the provincial government.

As a result, all employees, received PhP20,000 in additional incentives, twice the amount they received from last year due to the availability of funds.

It can be recalled that in December 2022, Governor Ramon V. Guico III asked the provincial board to amend the province’s 11-year-old Revenue Code wherein mineral extraction fees increased to PhP50 per cubic meter (cu, m) from PhP16.

The governor noted that previous administrations had been remiss in amending the Revenue Code which the Local Government Code requires to be done every five years.

Implemented in February 2023, the amended ordinance also imposed administrative fees ranging from PhP50 to PhP250 per cu. m., depending on the volume of minerals loaded on a truck.

Despite negative claims of his detractors, the governor stood firm that the increase in quarrying activity fees is worth it further stating that not all money goes to the province. He explained that the host barangay and the town will also benefit from the extraction fees.

Under the ordinance, 40 percent of the taxes collected will go to the host barangay, while 30 percent will go to the town or city, and the remaining 30 percent to the province.

The ordinance likewise said that illegal quarry sites and mineoperators will be charged with theft of minerals, which is punishable under the provisions of Republic Act 7942 or the Philippine Mining Act of 1995.

The ordinance also required quarry operators, after mining operations, to rehabilitate the excavated area to “a condition suitable for agricultural or other economic activities.”

Aside from this, operators are required to pay a cash bond of PhP100,000 before a permit is issued to ensure that they will comply with all the obligations the ordinance stipulated.

Otherwise, the bond will be forfeited and they will not be issued a quarry permit in the future.

“Previously, our projected income from river quarrying was only PhP12 million a year. That’s small for a province as large as Pangasinan,” Gov. Guico said. (Ruby F. Rayat/PIMRO)

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