ATM disappointed over granting of TRO that stops collection of 401 M levy on mining firm
ATM Statement | March 13, 2023
Alyansa Tigil Mina (ATM) expressed its disappointment over the decision of the Court of Tax Appeals granting a Temporary Restraining Order on the local government unit (LGU) of Tampakan and ordering the municipality to refrain from collecting P401 million from Sagittarius Mines Inc. (SMI) for the firm’s business permit.
“The Court’s decision effectively curtails local autonomy, which is mandated by no less than the Constitution,” said Rene Pamplona, ATM Chairperson and among the leaders in South Cotabato opposing SMI’s mining operations.
“Local autonomy means local government units are endowed with the power to decide on mining projects that are within their jurisdictions. In this case, the CTA has clipped the powers of the LGU of Tampakan from justly collecting the tax arrears of SMI,” he said.
“However, the court’s decision is merely a TRO that is good for twenty days. We hope that after thorough scrutiny of the issue, the CTA would uphold the decision of the lower court and order SMI to pay its tax arrears.”
On September 15, 2022, Municipal Mayor Leonard Escobillo revoked the Mayor’s permit of SMI because the “description of the business on undertaking that is to be conducted was falsely stated.”
According to the Message for Transmission of the Mayor addressed to SMI’s management, the mining company is a “Mineral Exploration Manufacturer contrary to the assessment of the Municipal Treasury Office that they are not operating as manufacturer but as a general engineering contractor.”
According to Pamplona, the assessed taxes amounting to P397 million caused the mining company to file a case against the LGU of Tampakan. “However, the Regional Trial Court ruled in favor of the LGU. SMI then elevated the case to the CTA, which subsequently issued the TRO,” he said.
Meanwhile, Jaybee Garganera pointed out that Indigenous People’s representatives are “misinformed about the principles of local autonomy when it comes to a local government giving its approval to national projects."
Garganera made the statement as a reaction to newspaper reports that cited IP leaders Dalena Samling and Domingo as saying that SMI shall operate in Tampakan based on a mining permit issued by the national government, not any LGU.
“This is absolutely incorrect as the state is required to seek the approval of the LGUs for environmentally-critical projects. In particular, the Local Government Code requires the national government to conduct consultations with different stakeholders,” said Garganera. Alyansa Tigil Mina (ATM) expressed its disappointment over the decision of the Court of Tax Appeals granting a Temporary Restraining Order on the local government unit (LGU) of Tampakan and ordering the municipality to refrain from collecting P401 million from Sagittarius Mines Inc. (SMI) for the firm’s business permit.
“The Court’s decision effectively curtails local autonomy, which is mandated by no less than the Constitution,” said Rene Pamplona, ATM Chairperson and among the leaders in South Cotabato opposing SMI’s mining operations.
“Local autonomy means local government units are endowed with the power to decide on mining projects that are within their jurisdictions. In this case, the CTA has clipped the powers of the LGU of Tampakan from justly collecting the tax arrears of SMI,” he said.
“However, the court’s decision is merely a TRO that is good for twenty days. We hope that after thorough scrutiny of the issue, the CTA would uphold the decision of the lower court and order SMI to pay its tax arrears.”
On September 15, 2022, Municipal Mayor Leonard Escobillo revoked the Mayor’s permit of SMI because the “description of the business on undertaking that is to be conducted was falsely stated.”
According to the Message for Transmission of the Mayor addressed to SMI’s management, the mining company is a “Mineral Exploration Manufacturer contrary to the assessment of the Municipal Treasury Office that they are not operating as manufacturer but as a general engineering contractor.”
According to Pamplona, the assessed taxes amounting to P397 million caused the mining company to file a case against the LGU of Tampakan. “However, the Regional Trial Court ruled in favor of the LGU. SMI then elevated the case to the CTA, which subsequently issued the TRO,” he said.
Meanwhile, Jaybee Garganera pointed out that Indigenous People’s representatives are “misinformed about the principles of local autonomy when it comes to a local government giving its approval to national projects."
Garganera made the statement as a reaction to newspaper reports that cited IP leaders Dalena Samling and Domingo as saying that SMI shall operate in Tampakan based on a mining permit issued by the national government, not any LGU.
“This is absolutely incorrect as the state is required to seek the approval of the LGUs for environmentally-critical projects. In particular, the Local Government Code requires the national government to conduct consultations with different stakeholders,” said Garganera.
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