LUCENA CITY, Quezon, Philippines—Mayor Romar Portes of Pagbilao, Quezon, the host municipality of the 735-megawatt coal-fed power plant, insists that the local government should be involved in the negotiation on how to amicably settle the P6 billion unpaid real estate tax of the plant operator.
Portes complained that the local government of Pagbilao is being kept in the dark over the reported compromise agreement being worked out by President Benigno Aquino III and Quezon Governor David Suarez to prevent the scheduled auction of plant properties on January 26.
“What is that compromise agreement? I don’t understand that. We knew nothing about it. I only heard the news over the radio and newspapers,” Portes said in an interview Monday.
He added: “The rightful authority on the collection of taxes is the municipality of Pagbilao. That’s very clear under the law.”
The 200-hectare power plant, which is being run by Japanese-controlled Team Energy (TE) Corp., lies at Isla Grande in Barangay (village) Ibabang Polo in Pagbilao fronting Tayabas Bay.
Last week, Malacañang announced that Aquino and Suarez have agreed to come up with a compromise deal in settling the P6-billion real estate tax liabilities owed by the owner and operator of the facility.
The reported arrangement averted the plan of the Quezon government to auction the power plant to recoup the unpaid taxes owed by the plant owner.
Webster Letargo, Suarez’s executive assistant, explained that there is still no substantial development on the matter of collecting the plant’s unpaid taxes.
“There is nothing to report yet (to Mayor Portes),” Letargo said.
In an earlier interview, Suarez said the purported compromise agreement is still being prepared for consultation with all concerned parties and "all issues are being tackled and considered."
“We yield to the wisdom of President Aquino regarding the postponement of the auction. However, all parties should arrive at an acceptable proposal before February 9. That’s the final date,” the governor said in a text message to the Philippine Daily Inquirer.
But Portes is puzzled with the reported compromise deal which is now being worked out at the level of the national government.
“What is there to compromise? How much will be the subject of that compromise deal? I was not aware of the planned sharing under that supposed compromised agreement,” he said.
Under the Local Government Code, real estate tax is to be distributed as follows: 50 percent will be divided equally by the local government and the provincial government for their respective school board funds; the other 50 percent will be divided by the host barangay, 25 percent; local government unit, 40 percent; and provincial government, 35 percent.
Portes has made it clear that the main focus of his administration is still to collect the unpaid taxes owed by the plant operator.
He stressed that the local government of Pagbilao will not issue business permit for the current year unless the plant operator settles its tax liabilities.
However, he admitted that stopping the plant operation would not be easy for the local government. The electricity generated from Pagbilao power plant accounts for around 20 percent of the total power-generating capacity in Luzon.
Late last month, the Quezon provincial government and the municipality of Pagbilao issued a final notice of delinquency to TE in a bid to collect P6.1-billion real property taxes from 1997 to 2010.
The treasurers of Quezon and Pagbilao warned the plant operator that its failure to settle the tax obligation within 10 days from receipt of the notice would force the local governments to resort to legal actions such as serving of warrant of levy and selling the plant and its properties in a public auction.
A source from the provincial government said two big companies have shown interest in joining the bidding of plant properties.
However, TE management continued to insist that the tax in question should be addressed to the National Power Corporation and not to the plant operator based on their Energy Conversion Agreement.
But the Supreme Court, in its final decision in January last year, denied Napocor’s bid to exempt the plant operator from paying real estate taxes.
Portes complained that the local government of Pagbilao is being kept in the dark over the reported compromise agreement being worked out by President Benigno Aquino III and Quezon Governor David Suarez to prevent the scheduled auction of plant properties on January 26.
“What is that compromise agreement? I don’t understand that. We knew nothing about it. I only heard the news over the radio and newspapers,” Portes said in an interview Monday.
He added: “The rightful authority on the collection of taxes is the municipality of Pagbilao. That’s very clear under the law.”
The 200-hectare power plant, which is being run by Japanese-controlled Team Energy (TE) Corp., lies at Isla Grande in Barangay (village) Ibabang Polo in Pagbilao fronting Tayabas Bay.
Last week, Malacañang announced that Aquino and Suarez have agreed to come up with a compromise deal in settling the P6-billion real estate tax liabilities owed by the owner and operator of the facility.
The reported arrangement averted the plan of the Quezon government to auction the power plant to recoup the unpaid taxes owed by the plant owner.
Webster Letargo, Suarez’s executive assistant, explained that there is still no substantial development on the matter of collecting the plant’s unpaid taxes.
“There is nothing to report yet (to Mayor Portes),” Letargo said.
In an earlier interview, Suarez said the purported compromise agreement is still being prepared for consultation with all concerned parties and "all issues are being tackled and considered."
“We yield to the wisdom of President Aquino regarding the postponement of the auction. However, all parties should arrive at an acceptable proposal before February 9. That’s the final date,” the governor said in a text message to the Philippine Daily Inquirer.
But Portes is puzzled with the reported compromise deal which is now being worked out at the level of the national government.
“What is there to compromise? How much will be the subject of that compromise deal? I was not aware of the planned sharing under that supposed compromised agreement,” he said.
Under the Local Government Code, real estate tax is to be distributed as follows: 50 percent will be divided equally by the local government and the provincial government for their respective school board funds; the other 50 percent will be divided by the host barangay, 25 percent; local government unit, 40 percent; and provincial government, 35 percent.
Portes has made it clear that the main focus of his administration is still to collect the unpaid taxes owed by the plant operator.
He stressed that the local government of Pagbilao will not issue business permit for the current year unless the plant operator settles its tax liabilities.
However, he admitted that stopping the plant operation would not be easy for the local government. The electricity generated from Pagbilao power plant accounts for around 20 percent of the total power-generating capacity in Luzon.
Late last month, the Quezon provincial government and the municipality of Pagbilao issued a final notice of delinquency to TE in a bid to collect P6.1-billion real property taxes from 1997 to 2010.
The treasurers of Quezon and Pagbilao warned the plant operator that its failure to settle the tax obligation within 10 days from receipt of the notice would force the local governments to resort to legal actions such as serving of warrant of levy and selling the plant and its properties in a public auction.
A source from the provincial government said two big companies have shown interest in joining the bidding of plant properties.
However, TE management continued to insist that the tax in question should be addressed to the National Power Corporation and not to the plant operator based on their Energy Conversion Agreement.
But the Supreme Court, in its final decision in January last year, denied Napocor’s bid to exempt the plant operator from paying real estate taxes.
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