Republic Act No.

7942
PHILIPPINE MINING ACT OF 1995
AN ACT INSTITUTING A NEW SYSTEM OF MINERAL
RESOURCES EXPLORATION, DEVELOPMENT, UTILIZATION
AND CONSERVATION
Section 86. Occupation Fees. - There shall be collected from any holder of a
mineral agreement, financial or technical assistance agreement or exploration
permit on public or private lands, an annual occupation fee in accordance with
the following schedule:
(a)

(c)

For exploration permit - Five pesos (P5.00) per hectare or fraction thereof per
annum.
(b) For mineral agreements and financial or technical assistance agreements
- Fifty pesos (P50.00) per hectare or fraction thereof per annum; and
For mineral reservation - One hundred pesos
(P100.00) per hectare or fraction thereof per annum.
The Secretary is authorized to increase the occupation fees provided herein
when the public interest so requires, upon recommendation of the Bureau
Director.
Section 87. Manner of Payment of Fees. - The fees shall be paid on the date
the mining agreement is registered with the appropriate office and on the same
date every year thereafter. It shall be paid to the treasurer of the municipality or
city where the onshore mining areas are located, or to the Director in case of
offshore mining areas. For this purpose, the appropriate officer shall submit to
the treasurer of the municipality or city where the onshore mining area is located,
a complete list of all onshore mining rights registered with his office, indicating
therein the names of the holders, area in hectares, location, and date registered.
If the fee is not paid on the date specified, it shall be increased by twenty-five per
centum (25%).
Section 88. Allocation of Occupation Fees. - Thirty per centum (30%) of all
occupational fees collected from the holders of mining rights in onshore mining
areas shall accrue to the province and seventy per centum (70%) to the
municipality in which the onshore mining areas are located. In a chartered city,
the full amount shall accrue to the city concerned.

Section 89. Filing Fees and Other Charges. - The Secretary is authorized to
charge reasonable filing fees and other charges as he may prescribe in
accordance with the implementing rules and regulations.

LOCAL GOVERNMENT CODE OF 1991(RA 7160)

Section 139. Professional Tax. (a) The Province may levy an annual
professional tax on each person engaged in the exercise or practice of his
profession requiring government examination at such amount and reasonable
classification as the sangguniang panlalawigan may determine but shall in no
case exceed Three Hundred pesos(P 300.00).
PROVINCIAL TAX ORDINANCE NO.1, series of 1993 as amended
ARTICLE V. PROFESSIONAL TAX
Sec. 31. Tax on Profession
There is hereby levied an annual professional tax on all persons engaged in the
exercise or practice of their profession requiring government examination
classified and with corresponding rates as follows :
(a) Three Hundred Pesos (P 300.00)
1. Lawyers
2. Medical Practitioners/Physicians
3. Architects
4. Interior Decorators and/or Designers
5. Landscape Architects
6. Certified Public Accountants
7. Civil Engineers
8. Electrical Engineers
9. Chemical Engineers
10. Mechanical Engineers
11.Agricultural Engineers
DISTINGUISH A TAX FROM A FEE
Tax is an enforced proportional contribution levied by the law making
body of the state to persons or property by virtue of its sovereignty for
the support of the government and for all its public needs.
Fee is an imposition that emanates from the police power of the state,
the power to regulate. The amount of exaction or charge, if it is to be a
license fee, must only be of a sufficient amount to include expenses of
(1) issuing a license; and (2) cost of necessary inspection or police

surveillance. In one case it was held that where a permit collected from
alien job applicant is in excess of the cost of regulation, the exaction is
a tax(Villegas v. Hiu Chiong Tsai Pao Ho, et al, Nov. 10, 1978).
Incidentally, exemption from tax does not include building permit fee
and special assessments (Apostolic Prefect of the Mountain Province v.
City Treasurer of Baguio, 71 Phil.547) as these are not taxes but
regulatory fees in the case of license fee, and levy on account of
benefits to land for special assessments. It was held that if the purpose
is to impose revenue, then the exaction is a tax.
Excise Tax. -Excise or privilege taxes are laid upon the manufacture,
sale or consumption within the country; upon licenses to pursue certain
occupation and upon corporate privileges.
General Tax- General taxes are taxes levied for the general or ordinary
purpose of the Government. Example of these are internal revenue
taxes, the collection of which is utilized for the general expenditures of
the Government.
Ad Valorem Tax An ad valorem tax is a tax upon the value of the
article or thing subject to taxation. An example of an ad valorem tax is
the real property tax.
Specific Tax- This is a tax which imposes a specific sum by the head or
number or by some standard of weight measurement and which
requires assessment beyond a listing and classification of the subject to
be taxed. Specific taxes on alcohol, tobacco, etc., are called excise tax.
Progressive Tax Progressive taxes are taxes imposed whereby the
rate or amount of the tax increases as the amount of the income or
earning to be taxed increases. An example of progressive taxation is
our present income tax.
Special Tax Special taxes are taxes levied for special purposes, such
as the additional 1% real estate tax under R.A. 5447 (SEF) for the
benefit of the public school system. The constitution provides that all
money collected on any tax levied for a special purpose shall be treated
as a special fund and paid out for a special purpose only. If the purpose
for which a special fund was created has been fulfilled or abandoned,
the balance, if any, shall be transferred to the general funds of the
Government.(Sec. 29(3), Art. VI, 1987 Constitution).
Customs Duties The word duty is sometimes used in a general
sense as synonymous with tax. Customs duties are duties charged
upon the commodities on their being imported into or exported from a
country.
Notes -4th Quarter Municipal Treasurers Conference, October 28, 2015
Gerry A. Avorque, Asst. Provincial Treasurer for Operations