Philex Mining agrees to pay P200M to 2 Benguet towns

TUBA, Benguet - An agreement has been reached between Philex Mining Corp.  and Tuba and Itogon towns in Benguet over supposedly P1.3-billion worth of unpaid taxes that the mine firm owes the two towns.

Both towns have agreed to be paid P100 million each,  Itogon town Mayor Victorio Palangdan confirmed, following  the town’s threats of barricading Philex should there be no final agreement by the end of March.

Palangdan said a formal signing of the Memorandum of Agreement will be made this month after both councils reviewed the new MOA.

The tax payment of Philex is a landmark case with the issue going on for years, making collection a problem for both towns.

Palangdan said both Itogon and Tuba towns have agreed to settle the business tax issue through formal talks with the mining firm’s legal counsels.

Tuba and Itogon are locked in a boundary dispute, giving Philex a reason to delay its tax payments to either towns.

To resolve the dispute,  Itogon and Tuba agreed to divide between themselves equally whatever they can get from Philex.

The two towns have  also agreed to fix the payments of the business taxes from Philex in the coming years.

Palangdan said the money will be used by Itogon to rehabilitate the Loakan Road as well as to jumpstart livelihood projects for the town to increase the income of the town's residents.

Philex has also agreed to acquire a mayor’s permit from Itogon town.

Tuba meantime will be using the collectible P100M to fund projects for the town, Mayor Florencio Bentrez said.