December 11, 2019 | 12:02 am
PANAY ELECTRIC Co., Inc. (PECO) said
it had paid nearly P135 million to the Iloilo City government as settlement of
its real property tax (RPT) obligations.
“Now that PECO has paid the tax
liabilities assessed by the city government of Iloilo, there is no more reason
to proceed with the planned auction of the company’s properties on December
12,” said Marcelo U. Cacho, PECO head of public engagement and government
affairs, in a statement on Monday.
The amount at P134,927,522.63 covers
the city’s power distribution utility’s past and present real property tax
liability from 2006 until 2019. It excludes interests and penalties that are
the subject of Local Board of Assessment Appeals (LBAA) Case No. 2017-01 and
LBAA Case No. 2019-01.
“Those who want to take over our
services through whatever means at their disposal — ethical or otherwise —
wanted to participate in the planned auction because they wanted to take
shortcuts in acquiring power distribution assets,” Mr. Cacho said.
“And because they really have no
physical capability to serve the power needs of Iloilo. What do they really
have right now, other than the backing of their friends in government?” he
added, alluding to MORE Electric and Power Co. that has secured a congressional
franchise covering Iloilo.
PECO said the payment averts the
Iloilo’s planned auction of the company’s properties, which will be done
supposedly to cover its real property tax liabilities.
“Since the start, PECO is determined
to settle and pay all its tax liabilities to the LGU, as may be required by
laws or ordinances,” Mr. Cacho said.
“In fact, PECO is not just paying
its taxes in full, the company is even pre-paying in advance the RPT due on
December 31 and now we are clear of all tax liabilities,” he added.
Mr. Cacho said the company had
always been willing to amicably settle the tax cases and disputes between it
and the LGU (local government unit).
In the same statement, PECO quoted
Iloilo Mayor Jerry P. Treñas as saying: “With this, we can properly fund
programs intended for much improved social services and other initiatives that
would benefit the Ilonggo community in our quest to bringing Iloilo City to the
next level.”
Mr. Cacho said PECO never opposed
the paying of new property taxes.
“We just wanted clarification on why
suddenly we get slapped with an unfair ten-year back-tax assessment,” he said.
— Victor V. Saulon
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