Dominguez cuts tax on gold to help BSP, small miners
The black market is out, gold is in.
Finance Secretary Carlos Dominguez III said he signed new rules for the Bureau of Internal Revenue which will cut the creditable withholding tax on gold sales from 5 to 1 percent. Meanwhile, excise tax remains at 2 percent.
Dominguez said the move is two-pronged. First, it will help small-scale miners to get better rates by selling their produce to the Bangko Sentral ng Pilipinas (BSP) rather than in the black market.
Second, it will also help build up the BSP’s reserves, as buying the gold from local producers makes it cheaper than using dollars to buy from the global market .
The new tax rates would assist gold miners from Davao, Zamboanga, Naga and Baguio to get fair market price for their produce via the central bank.