BSP, DENR blame 76% plunge in small-scale gold output on salting

Gold production reported by small-scale miners plunged 76 percent, leading the Bangko Sentral ng Pilipinas and the Department of Environment and Natural Resources (DENR) to suspect the miners are salting the gold into the black market to avoid taxes.   DENR Secretary Ramon Paje said they will submit the data they gathered to the other concerned agencies so the proper investigation and enforcement of tax laws can proceed.   “The implementation of tax laws regarding the sale of gold by small-scale miners to the BSP accounted for the sluggish performance of the sub-sector," Paje noted.   Gold purchases of the Bangko Sentral from small miners in the third quarter was only 1,722 kilograms (kgs) compared to the 7,166 kgs in the same 2010 period.   The price of gold today is $1738.60 per troy ounce. A kilogram of gold is 32.1507 troy ounces. A kilo of gold is therefore worth $55,897.207 at today's price.   The taxation on gold production consists of a 2-percent excise tax and a 5-percent withholding tax. — ELR/VS, GMA News