Bureau of Local Government Finance Opinion

March 22, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Joselito R. Bacani Resident Manager Zambales Diversified Metals Corporation 4th Floor Pilgrim Building 111 Aguirre Street, Legaspi Village Makati City Sir : This refers to your dated October 7, 2010 addressed to the Honorable governor, Province of Zambales, copy furnished this Bureau, relative to the payment of occupation fees by the Zambales Diversified Metals Corporation (ZDMC). Said letter was referred thru the Provincial Treasurer of Zambales, to the Municipal Treasurer of Sta. Cruz, said province, for comment and/or appropriate action under a 1st Indorsement dated November 3, 2010, copy enclosed. In reply to our indorsement, the Municipal Treasurer informed that the non-acceptance of the payment of the occupation fees was based on the memorandum dated December 2, 2009, copy also enclosed, issued by the Municipal Mayor of Sta. Cruz, requiring mining operators to secure the necessary Mayor's Permit before they can be allowed to pay their occupation fees and operate their business thereat. In this connection, reference is made to the provision of Section 147 of the Local Government Code (LGC) of 1991, quoted as follows: CTaIHE "Section 147. Fees and Charges. The municipality may impose and collect such reasonable fees and charges on business and occupation and, except as reserved to the province in Section 139 of this Code, on the practice of any profession or calling, commensurate with the cost of regulation, inspection and licensing before any person may engage in such business or occupation, or practice such profession or calling." It is clear from the aforequoted provision of law that it is mandatory for the operator of any business or calling to secure a Mayor's Permit to operate. The non-issuance of such a permit may constitute sufficient ground for closure and stoppage of the operations of a business or establishment. Accordingly, ZDMC should secure the necessary Mayor's Permit subject to the payment of fees imposed under a duly-enacted ordinance of Sta. Cruz, Zambales. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director