Albay Rep. Joey Salceda wants to ensure tax provisions of oil and gas exploration deals in the Bangsamoro Autonomous Region in Muslim Mindanao are “clear, fair and square.”
This is in response to the recent formalization of the Intergovernmental Energy Board that shall manage the extraction of petroleum reserves in the Bangsamoro area.
Salceda said he is working with the national government and will be engaging the Bangsamoro government on the region’s Tax Code as part of the effort.
The Board’s duties would include setting policies for the extraction of oil and gas in the Bangsamoro region, which covers gas-rich areas such as the Liguasan Marsh.
“Liguasan Marsh is suspected to have the largest deposits of natural gas in Southeast Asia. Now, we can’t know for sure, because prospecting has been limited by lack of investments and the peace and order situation, until now. The BARMM government and close collaboration with the National Government give us the opportunity to do that,” he said.
The Liguasan Marsh is a 220,000-hectare wetland with proven reserves of natural gas.
“It could be the key to energy independence for the Philippines, especially with the shift towards LNG in a transition away from coal.
It could also make BARMM one of the richest areas in the country if we can manage governance well,” Salceda cited.
He said he is now working with the Office of the Presidential Adviser on Peace, Reconciliation, and Unity, and will be engaging the Bangsamoro Parliament in ensuring that the BARMM Tax Code is “constitutional, consistent, and constructive” especially in areas of oil and gas exploration.
“The regime I envision is 60 percent of net revenues go to the government, equally shared between BARMM and the NG, in lieu of any and all taxes. Of course, that decision is to be made by the Bangsamoro Parliament, but my Committee will offer its expertise and perspective,” he added.