MANILA -- The Senate has approved on second reading a bill seeking to boost the country's gross international reserves (GIR) by granting tax exemptions to small-scale miners who would sell their gold to the Bangko Sentral ng Pilipinas (BSP).
Senate Bill No. 2127 was approved on second reading Tuesday without amendments.
The measure seeks to exempt small-scale gold miners from paying income and excise taxes by amending Section 32 and 151 of Republic Act (RA) No. 8424, or the National Internal Revenue Code.
Under the bill, the tax exemptions cover proceeds from the "sale of gold to the BSP by registered small-scale miners" and "sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP."
Senator Sonny Angara, sponsor of the bill, said the measure is a "win-win" for both the BSP and small-scale miners.
"The proposed legislation would have the effect of assisting the BSP in the fulfillment of its mandate under its charter, returning to the formal sector the sale of gold from small-scale mining, and support the trade of small-scale miners as originally envisioned under RA 7076 (the People's Small Scale Mining Act of 1991)," Angara said.
He said it would enable the BSP to shore up the country's GIR, which dropped to a seven-year low at USD74.8 billion last October. (PNA)
