Philex, Tuba, Itogon talk on unpaid taxes, closure order

TUBA, Benguet -- Philex Mining Corporation, the municipalities of Tuba and Itogon met last week tackle the issues surrounding the mining company’s unpaid business tax and issuance of a closure order by both town governments against the mining company for nonpayment.

The company’s business tax accountability has ballooned to P1,361,451,514.11 representing business taxes that were  unpaid since 2002, which based on the most recent consolidated business tax assessment of both municipalities is already P2.2 billion.

Years back, officials of both LGUs have come up with a consensus to resolve the business tax share issue by settling at receiving 50-50 share, which initially, the company started to give to both LGUs until it stopped in 2002.

Lawyer Eduardo Aratas, Philex-Padcal manager for Administration and concurrent spokesperson, said that the representatives of the company visited Itogon and Tuba officials and scheduled dialogue with the officials of the two local governments.

He said Philex has not paid business taxes for a few years to the two local governments due to boundary dispute of the two LGUs.

The entire area being occupied by Philex mines is bounded by the two municipalities, particularly Camp 3 in Tuba, Benguet and Tinongdan in Itogon. 

However, Aratas said that the subsidence area, where the mining operation is, is located in Tuba.

Mayor VictorioPalangdan of Itogon and Mayor Florencio Bentres of Tuba, with the conformity of their respective councils, issued a joint closure order addressed to Philex last February.