ATTY. NOEL ALLEN R.

BOSE
Attorney-at-Law

December 7, 2018
OFFICE OF THE PROVINCIAL
TREASURER
Provincial Capitol Complex, Cadlan, Pili
Province of Camarines Sur

Attention: SHEENA ARVEY R. ATOLE, CPA

Acting-Provincial Treasurer

Re: Letter dated October 26, 2018

For Sand & Gravel Tax

Greetings:

This refers to your Letter dated October 26, 2018 on the imposition of a Sand &
Gravel tax pursuant to Section 19 of Provincial Tax Ordinance No. 30, Series of 2014 upon
the use by my client, BLACKRAM BUILDERS, INC. of aggregates or RMCs provided
by its contractors. Said letter imposes the following:

Description of Quarry No. of Cubic Multiplied by Rate TOTAL SGT.

Materials Meters Used Per. Cum. PAYABLE
1. Sand 961.45 35 P 33,650.75
2. Gravel 1,923.00 40 76,916.00
3. Aggregate Base 385.00 40 15,383.20
Course
4. Aggregate Sub Base 1,978.00 40 79,113.60
Course
P 205,063.55

With all due respect, my client is not liable to pay any of the foregoing taxes.

Section 19, Art. IV of Provincial Tax Ordinance of Camarines Sur No. 30, Series of
2015, which provides that:

“Section 19. SAND AND GRAVEL TAX. There is hereby imposed a tax
of Ten Percent (10%) of Fair Market Value in the locality per cubic meter of
ordinary stones, sand, gravel, earth and other quarry resources, as defined under
the National Internal Revenue Code, as amended, as extracted from public
lands or from the beds of seas, lakes, rivers, streams, creeks and other
public waters within the territorial jurisdiction of the Province. (Sec. 138.
R.A. 7160)

Quarry resources as contemplated in Sec. 138 of R.A.7160 shall include

but not limited to ordinary stones, gravel, sand, boulders, earth fill, guano, bugitis
and other similar resources, marl, marble, volcanic cinders, basalt, tuff, rock
phosphates, limestone for lime, silica sand/white clay, clay talc, gypsum,
chromite, ball clay, bentonite, kaolin clay, perlite, pebbles, pumice, shale clay, silica
clay, silica quartz, silica sand/bull quartz, zeolite, decorative stone and other
minerals extracted from public lands, or from the beds of seas, lakes, rivers,
streams, creeks and other public waters within the territorial jurisdiction
of the Province of Camarines Sur. (Ord. No. 008 s. 1995)” [Emphasis Ours]
Rm. 15, 2nd Floor, V&O Co. Bldg Cor, Lapu-Lapu St. E-mail: noelallenbose@gmail.com
and Quezon Avenue, Legazpi City, Albay Telephone: 742-4743
Sun: 09338776952 Globe: 09260611561
 ATTY. NOEL ALLEN R. BOSE
Attorney-at-Law

Said provision of the ordinance is unequivocal. The provincial government can only
impose sand and gravel tax if: 1.) the taxpayer extracts quarry resources as defined by law and
ordinance; and, 2.) such quarry resources were extracted within the territorial jurisdiction of the
province.

The requisites for the imposition of said tax are not present in my client’s case. In the
first place, my client did not extract any sand, gravel or any other quarry resources. My client
is a contractor tasked with the actual repair or improvement of Palsong La Purisima (Pakili)
Road in Bula, Camarines Sur. It does not operate a quarrying business much less does it
engage itself in directly/indirectly extracting quarry resources.

Instead, my client outsources Ready-Made Concretes from its suppliers. Herein

attached are copies of the receipts to prove that my client has been purchasing these RMCs.
Whether or not the suppliers extracted said quarry resources within the territorial jurisdiction
of the Province of Camarines Sur does not change the fact that my client is not liable to
sand and gravel taxes. If any, said suppliers may be liable for such taxes. However, the same
liability cannot be shifted to my client.

It is respectfully submitted that the Letter dated October 26, 2018 is devoid of merit
and that my client, Blackram Builders, Inc. should not be required to pay the amounts
indicated in said Letter.

In view of the foregoing, we most respectfully pray from your Honorable Office to
to reconsider the imposition of the aforementioned taxes.

Conforme: Very Truly Yours,

Engr. Ruperto A. Mella Atty. Noel Allen R. Bose

Rm. 15, 2nd Floor, V&O Co. Bldg Cor, Lapu-Lapu St. E-mail: noelallenbose@gmail.com
and Quezon Avenue, Legazpi City, Albay Telephone: 742-4743
Sun: 09338776952 Globe: 09260611561