Finance Secretary Carlos Dominguez III described as a “good idea” a congressional proposal to impose an additional tax on mining, with the proceeds to be placed in a sovereign wealth fund to benefit future generations of Filipinos.
Dominguez said in a statement the proposal, introduced by Albay Rep. Joey Salceda, followed the principle of “intergenerational equity,” which ensures fairness among generations in the use and conservation of natural resources.
In this case, the concept of intergenerational equity applies to the use and conservation of the country’s rich mineral resources.
“The idea of a sovereign fund is actually a good idea,” said Dominguez in a recent press briefing. “It answers the question (of how) you’re using a non-renewable resource and passing on the benefits to future generations.”
Salceda, who chairs the House committee on ways and means, said aside from raising the current excise taxes on mining, he would propose a new 2-percent tax on gross output for large-scale metallic mining that will form part of a “Natural Resource Trust Fund.
