Conditional Suspension of Payment by Copper Mining Companies of All Taxes and Other Charges

July 17, 1984

LETTER OF INSTRUCTIONS NO. 1416

 

WHEREAS, the copper industry is suffering from staggering cash deficits due to the depressed prices of copper which has persisted for about two years now;

WHEREAS, because of this adverse market conditions, several mines have already closed down while others are on the brink of stopping operations; ITAaHc

WHEREAS, without Government support, more copper mining companies will soon become insolvent, resulting in the virtual collapse of the industry and other industries dependent on it such as copper smelting and production of fertilizer derivative;

WHEREAS, the collapse of the copper industry will mean the loss of a traditional source of vitally-needed foreign exchange and unemployment leading to deprivation of thousands of families dependent on the industry for their subsistence;

In view of the foregoing, it is therefore, in the national interest that the Government assist the copper industry and toward this end, I hereby order and direct the suspension of payment of all taxes, duties, fees, imposts and other charges, whether direct or indirect, due and payable by the copper mining companies in distress to the National and Local Governments under the following conditions:

1. Only copper mining companies as determined by the Minister of Trade and Industry who can demonstrate that their continued operations under the present operating conditions and market situation can not be viably sustained may avail of the suspension of payment privilege.

2. The suspension of payment privilege shall be lifted once the world market price of copper reaches a level adequate to sustain the operation of copper mines as determined by the Minister of Trade and Industry and subject to the approval of the President.

3. The repayment of taxes, duties, fees and imposts the collection of which have been suspended shall be scheduled according to the individual paying capacity of each mining company, the repayment which shall commence after the world market price has stabilized at an economically viable level as determined by the Minister of Trade and Industry and subject to the approval of the President.

4. The Minister of Trade and Industry shall have the authority to certify copper mining companies as eligible for suspension of payments, subject to the approval of the President.

5. The Minister of Energy is authorized to permit the sale and delivery of petroleum products to copper mining companies with tax suspension privilege, without payment of taxes, duties and imposts on the relevant products, provided such unpaid amount forms part of the unpaid taxes of the particular mining company.

6. The Minister of Trade and Industry is authorized to promulgate the implementing rules for this Letter of Instructions.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 17th day of July, in the year of Our Lord, Nineteen Hundred Eighty Four.