Philex Mining agrees to pay P200M to 2 Benguet towns
>> Monday, April 7, 2014
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.
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