Section 88
SEC. 88. There shall be assessed and collected an ad valorem tax of one and one-half per centum of the actual market value of the annual gross output of the minerals or mineral products extracted or produced from all mineral lands, not covered by lease: Provided, That in the case of gold mines, their annual gross output shall be subject to a tax of one and one-half per centum when the value of the said output does not exceed five hundred thousand pesos; two per centum when the value exceeds five hundred thousand pesos but does not exceed one million pesos; two and one-half per centum when the value exceeds one million pesos but does not exceed one million five hundred thousand pesos; three per centum when the value exceeds one million five hundred thousand pesos but does not exceed two million pesos; three and three-eighths per centum when the value exceeds two million pesos but does not exceed two million five hundred thousand pesos; three and three-fourths per centum when the value exceeds two million five hundred thousand pesos but does not exceed three million pesos; four and one-eighth per centum when the value exceeds three million pesos but does not exceed three million five hundred thousand pesos; four and one-half per centum when the value exceeds three million five hundred thousand pesos but does not exceed four million pesos; four and three-fourths per centum when the value exceeds four million pesos but does not exceed four million five hundred thousand pesos; five per centum when the value exceeds four million five hundred thousand pesos but does not exceed five million pesos; five and one-eighth per centum when the value exceeds five million pesos but does not exceed five million five hundred thousand pesos; five and one-fourth per centum when the value exceeds five million five hundred thousand pesos but does not exceed six million pesos; five and three-eighths per centum when the value exceeds six million pesos but does not exceed six million five hundred thousand pesos; and five and one-half per centum when the value exceeds six million five hundred thousand pesos: Provided, further, That the following rates of deduction from the taxes on the annual gross output of gold payable under the provisions of this section shall be allowed: (1) Fifteen per centum in the case of lode mines producing gold from ores which average less than ten pesos, but more than seven pesos per ton; (2) Twenty-five per centum in the case of lode mines producing gold ores which average less than seven pesos per ton. The average value per ton of ore shall be determined by dividing the total gross output in pesos for any year by the total number of tons milled during that year for any particular mine; (3) Thirty-five per centum in the case of gold placer mines. The terms "gross output" of mines or mineral lands shall be interpreted as the actual market value of mineral or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction for mining, milling, refining, transporting, handling, marketing, or any other expenses. The output of any group of contiguous mining claims shall not be subdivided. The said ad valorem tax shall be due and payable to the Government of the Philippines through the Collector of Internal Revenue within sixty days after the shipment of the mineral or mineral products from the mines: Provided, That before any mineral or mineral product may be shipped from the mine, the Collector or Internal Revenue or his representative shall first be duly notified to that effect: Provided, further, That upon failure to pay the ad valorem tax herein levied within the time prescribed, the same penalties or liabilities as provided by existing laws for the collection of such taxes shall be imposed: Provided, finally, That the ad valorem tax herein provided to be paid and collected shall accrue to the general fund of the Philippine Treasury and shall be in lieu of any royalty or other ad valorem taxes imposed by this Act, and by section one thousand five hundred and thirty-four of the Revised Administrative Code as amended by Act Numbered Four thousand fifty-eight.