Despite formalization, small-scale gold miners still prefer black market

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The tedious process and fees discourage many small-scale miners from transacting with the Bangko Sentral ng Pilipinas

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At least four miners and tunnel operators interviewed by Rappler in September shared the same sentiment. According to them, they only sell small amounts to local BSP-accredited buyers, with the majority of the gold produced from their mines ending up in the black market. He also pointed out that since BSP uses checks, they need to spend additional time at the bank to cash them.In recent years, the government has introduced measures to tackle the leakage of gold from small-scale mining to the black market., amending the country’s revenue code to exempt legal small-scale mining operations from income and excise taxes when selling gold to the BSP.

She said in an October 6 interview that many miners were unaware of the tax exemption for those operating legally. Besides the accessibility of the buying station, she said the fees and BSP’s payment method are key concerns for small-scale miners. This is why planetGOLD initiated a partnership with BSP and PJ Lhuillier Group of Companies for a gold-buying program to address other concerns.

Even those operating legally, like in Sagada, prefer selling their produce to the black market for convenience. This not only makes tracking the actual gold produced from small-scale mining difficult but also causes billions in losses, impacting the country’s Gross International Reserves.

 

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