Pangasinan gov’t demands P179-M taxes from Napocor

BY JERRY PADILLA

LINGAYEN, Pangasinan – The provincial government is demanding payment of more than P179.7 million in unpaid real property taxes from the National Power Corp. for its coal-fired power plant in Sual town.

In a special session on August 9, the provincial board approved a resolution authorizing Gov. Amado Espino Jr. to enter into and sign in behalf off the province any settlement agreement with Napocor for the real property tax assessments on machinery, equipment and other improvements, including penalties and surcharges, in the Sual power plant.

According to the approved resolution authored by second district board member Vob Mark Mendoza, the municipal treasurer of Sual, as deputy of the provincial treasurer in the collection of real estate taxes, has sent the Napocor demand letters, the latest of which was last July 5, and notice of delinquencies requiring it to settle its unpaid real property taxes.

Last July 18, the provincial board of assessment appeals issued an order denying Napocor’s petition seeking exemption from the payment of real property taxes on machinery and equipment.

On July 30, Espino’s office received a letter dated July 17, 2007 from NAPOCOR president Cyril del Callar, expressing the state-run corporation’s intention to come up with a reasonable settlement with the provincial government on the assessed real property taxes.

Mendoza said there is a need for the province to look into the rationality of Napocor’s proposal, as stated in Callar’s letter, considering that it is the company’s standard offer on its real property tax settlements with other local government units.

Mendoza said the province wants to collect the real property taxes from Napocor at the soonest possible time and in the most reasonable terms benefiting the province.

Provincial treasurer Ramon Crisostomo, who attended the provincial board’s session to comment on the issue, said he favors such a move as it might expedite the tax collection from Napocor.

Crisostomo said the tax arrears were from the entire 2006 to July this year.