THE Dolomite Mining Corp. (DMC) in the southern town of Alcoy, Cebu has finally agreed to pay P65.7 million in taxes it owes the Cebu Provincial Government for the last 15 years.
During a meeting with Gov. Gwendolyn Garcia at the Capitol on Tuesday, Feb. 21, 2023, DMC officials led by company president Cesar Omnes agreed to pay the amount for its quarry operations in Barangay Pugalo since 2008.
According to a report in Sugbo News, the media arm of the Provincial Government, the company will initially pay P20 million while the balance will be paid on a staggered basis.
It said that DMC, a Filipino-Japanese firm, has a 25-year mineral production sharing agreement with the government to mine dolomite, or until 2030.
Provincial Treasurer Roy Salubre said they based the firm’s tax calculation on Provincial Ordinance 2008-10, or the Revenue Code of Cebu of 2008.
Section 124 Article E of the ordinance provides the imposition of tax of 10 percent of the local fair market value per cubic meter on all ordinary stones, sand, gravel, earth and other quarry resources extracted within the territorial jurisdiction of the Province.
For many years, DMC quarried raw dolomite and sold it to its only customer, the Philippine Mining Service Corp. (PMSC), which operates in Barangay Pugalo, Alcoy, for “processing to various desired sizes and marketable products.”
The Sugbo News report said that with the settlement, the Cebu Provincial Government and DMC “will be exploring possibilities of partnership, with the former buying dolomite from the latter for raw material requirements for infrastructure projects in the province.”
Last Friday, Feb. 17, Gov. Gwendolyn Garcia ordered the PMSC to stop the processing, sale and transportation of dolomite, mineral deposits and other quarry resources because the company neglected to pay environmental taxes.
Garcia issued Executive Order 7 to remind PMSC that it cannot operate for refusing to pay taxes to the Cebu Provincial Government as required by Provincial Ordinance 2008-10.
Salubre said that until now the Capitol has not received the P1.9 billion tax payment from the PMSC. (ANV / PJB)