Philex to pay Tuba, Itogon-A A +A
Monday, March 31, 2014
AN AGREEMENT between Philex Mining Corporation and twin municipalities, Tuba and Itogon, has finally been reached.
Mayor Victorio Palangdan said an agreement was met and approved before the threat of barricades was set up, resolving years of misunderstanding, amicably.
Palangdan said a formal signing of the Memorandum of Agreement will be made next month after both councils reviewed the new MOA where P200 million will be paid by Philex and divided between the towns.
The tax payment of Philex is a landmark case with the issue going on for years, making collection a problem for both municipalities.
Palangdan was ready to lead a barricade against Philex Mining Corporation if agreed payments on taxes are not made by the end of this month.
Palangdan said both Itogon and Tuba towns have agreed to settle the business tax issue to the tune of P200 million through formal talks with the mining firm’s legal counsels.
Tuba and Itogon are in the midst of a boundary dispute, which made payments of business taxes difficult for the mining company which initially opted to wait for courts to decide on the legal matter.
In a bid to settle the boundary dispute both towns agreed proceeds to be derived from the business taxes of Philex shall be divided equally by and among them as well as fix the payments to be made by the mining firm 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 in a bid to increase the per capita income of the municipality.
Philex has also agreed to acquire a mayor’s permit from Itogon town.
Published in the Sun.Star Baguio newspaper on April 01, 2014.