Benguet wants big tax from San Roque dam

By Dexter A. See
LA TRINIDAD, Benguet – The provincial government of Benguet wants an increased share from taxes generated by the 345-megawatt San Roque multi-purpose dam in San Manuel, Pangasinan, saying water, the main ingredient in power generation, comes from the watersheds of the province.

Gov. Nestor B. Fongwan said he will lead a delegation from the province to talk with their Pangasinan counterparts to realize their ambition in increasing the province’s share from the national wealth tax being paid by operator of the second biggest dam in Asia.

He expressed confidence Pangasinan officials will understand their plight for an improved version of an earlier agreement to increase the tax share of the province so funds will be utilized to implement more development projects in host communities.

In 2007, Fongwan worked out a 50-50 sharing of the national wealth tax arising from the operation of the dam which is located within the boundary of Benguet and Pangasinan.

The basis of the equal sharing originated from the fact that while the dam’s plant is located in San Manuel, Pangasinan, the dam’s reservoir and watershed is hosted by Itogon, Benguet.

Under the government’s policy on the national wealth tax, 60 percent is retained by the national government while 40 percent will be shared by the host provinces, municipalities and barangays (villages).