16 August 2005
Agbayani: Thank you, Mirant!
PANGASINAN Governor Victor Agbayani hailed the decision of Mirant Philippines to finally settle its tax obligations to the province saying that with the new money collected, the province could now pursue construction of classrooms to ease the schoolbuilding backlog in the province.
Provincial Administrator and concurrent Provincial Legal Officer Virgilio Solis, Jr. said payment of this huge tax obligation amounting to P196,479,023.26 was the culmination of a two-year legal battle between the provincial government and Mirant, one of the Independent Power Producers (IPPs) in the Philippines.
Mirant operates the 1,200 megawatt coal-fired power plant in Sual town.
The provincial government went to court when Mirant stopped its payment of real property tax in the second quarter of 2003, contending that it is tax-exempt as the Sual Coal-Fired Power Plant is a build-operate-transfer project to be eventually owned by the National Power Corporation after 25 years.
The amount paid by Mirant, he said, will be shared by the provincial government, the municipality of Sual and barangay Pangascasan where the Sual Coal-Fired Power Plant is located.
Based on Tax Ordinance No. 1, series of 1992 of Pangasinan province, one half of the real property tax collection or P98,239,511 million will go to the Special Education Fund to be divided between the provincial school board of Pangasinan, and the municipal school board of Sual.
The other half of the basic tax will be divided among the province which will get 35 percent or P34,383,829 million, the municipal government of Sual, 40 percent or P39,295,804 million; and barangay Pangascasan, 25 percent or P24,559,877 million.
Solis said that Pangasinan’s share of P34,383,829 million from the basic tax will go to the general fund to be appropriated for projects thru a supplemental budget to be enacted by the provincial board.
Provincial Administrator and concurrent Provincial Legal Officer Virgilio Solis, Jr. said payment of this huge tax obligation amounting to P196,479,023.26 was the culmination of a two-year legal battle between the provincial government and Mirant, one of the Independent Power Producers (IPPs) in the Philippines.
Mirant operates the 1,200 megawatt coal-fired power plant in Sual town.
The provincial government went to court when Mirant stopped its payment of real property tax in the second quarter of 2003, contending that it is tax-exempt as the Sual Coal-Fired Power Plant is a build-operate-transfer project to be eventually owned by the National Power Corporation after 25 years.
The amount paid by Mirant, he said, will be shared by the provincial government, the municipality of Sual and barangay Pangascasan where the Sual Coal-Fired Power Plant is located.
Based on Tax Ordinance No. 1, series of 1992 of Pangasinan province, one half of the real property tax collection or P98,239,511 million will go to the Special Education Fund to be divided between the provincial school board of Pangasinan, and the municipal school board of Sual.
The other half of the basic tax will be divided among the province which will get 35 percent or P34,383,829 million, the municipal government of Sual, 40 percent or P39,295,804 million; and barangay Pangascasan, 25 percent or P24,559,877 million.
Solis said that Pangasinan’s share of P34,383,829 million from the basic tax will go to the general fund to be appropriated for projects thru a supplemental budget to be enacted by the provincial board.
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Boy, thats a lot of money! People of Sual and Pangascasan, better guard that money. And hey, if the money goes straight to the benefiaries in those areas, I would be the happiest person on earth. To those who's got sticky fingers, better stay away from the loot! Someone is watching ya!
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# posted by 
: 8/16/2005 07:36:00 PM
: 8/16/2005 07:36:00 PM 
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