Quezon govt to question Pagbilao tax exemption

Manila Standard Today

by Christine F. Herrera

THE provincial government of Quezon is gearing up to challenge the legality of President Benigno Aquino III’s decision to condone a coal power plant’s P1.6 billion in tax obligations to the province, House Deputy Minority Leader and Quezon Rep. Danilo Suarez said Sunday.

“We will look at the legality of President Aquino’s [executive order],” said Suarez, whose son David is the provincial governor.

“We don’t want the Palace to battle with the Supreme Court yet again. We don’t want the Palace to get embarrassed. As much as possible, we want an amicable solution to the problem.”

Suarez said Quezon officials and the Palace had reached an amicable settlement over the tax obligations of the Pagbilao coal power plant, which sits on the province-owned 200-hectare property in Isla Grande. The deal was supposed to release funds from a number of departments to help the province bankroll its projects.

“There were no fund releases made. The promise remained a promise,” Suarez said.

“The Palace committed but they did not deliver.”

In condoning the tax obligations on Feb. 28, President Aquino preempted the provincial government’s plan to auction off the power plant.

“We also have to look after the interest of our people in Pagbilao,” Suarez said.

“The province is b urdened by respiratory and mercury-related illnesses amounting to P50 million to P70 million annually. The national government turns a blind eye on that.”

Suarez said Finance Secretary Cesar Purisima was adamant against paying the tax obligation out of fear that the case would set a bad precedent.

Purisima insisted that the national government was exempted from paying realty taxes, contrary to the Supreme Court ruling that the national government was obliged to pay the taxes, Suarez said.

“How can it be precedent-setting when the other provinces do not host coal power plants?” Suarez said.

“They do not have problems like respiratory and mercury-related illnesses. It is the people of the province that bear the brunt of the environmental hazards.”