Manila's Latest Lure: Raise Taxes

Philippines Hopes Boosting Treasury to Protect the Environment Could Help Mollify Mining Foes

Business and environment will forever be united, but I'm not sure if this is a victory for protecting the environment with taxes or not.  The Philippines is trying it, though.  By taxing its mining industries, the government is hoping to discourage extremely harmful miners as well as provide income for environment protection and restoration.  Whether this is good or bad for the environment is debateable, I think. 

On the one hand, it does provide a source of funding that can be used to protect the environment and an emphasis on environmental protection.  On the other hand, there is no guarantee that the revenue will be used for that environmental protection or for incentivizing miners to be more sustainable.  At the same time, even miners seem to be quiet about their opinions regarding this.  The church, too, seems hesitant to throw all of their support at this new "approach" to mining, as they are unsure if it will be as effective as the government is claiming.  

In the meantime, the policy seems to be doing at least a little bit, since miners have to wait until the details are sorted out before they are able to make any decisions or implement anything themselves.  

One thing that has me especially worried about this idea is the fact that the article claims that corruption and underinvestment are a large part of why there are problems in the mining industry that has a large potential to grow.  So if this tax really does go through, I highly doubt that all of the funds will go towards restoring the environment.

Another interesting thing about this article is the fact that there seems to be more of a push to increase mining in The Philippines.  Usually it is the other way around, but it seems like this country has the potential to accomplish a lot to help themselves through the mining industry, but cannot seem to get themselves into a productive situation that will increase revenue without harming the environment further.  The idea of bringing the major miners they are seeking also seems a little wishy-washy.  On the one hand, international mining corporations may be able to mine more efficiently, and therefore have less of an impact on the environment.  At the same time but on the other hand, they could also see an opportunity to exploit The Philippines' lack of environmental mining standards, instead choosing to pay the taxes and simply leave it at that.  

What do you think?  Do you think that this tax will be the most efficient way to help the economy here while still protecting the environment?  Or does The Philippines need to reassess their strategy for boosting their mining industry in a green way? Can they do this and still incorporate bigger investors?