Town officials to file motion on 'exorbitant fees' case

Sunday, January 22, 2012

SAN SIMON -- Mayor Leonora Wong said recently that the Municipal Government here will file a motion for reconsideration (MR) regarding the complaint of SKK Steel Corporation that the Regional Trial Court's Branch 64 upheld.

The complaint of the SKK revolved around the alleged "exorbitant fees" -- about P300 -- being collected by the Municipal Government from haulers and trucks delivering junk and scrap metal.

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SKK also alleged that such collections have paralyzed its operations and resulted in the "imminent closure" of its business in the town.

But Wong said under Section 133 of the local government code, the collections were legal, as can be gleaned also from Department of Interior and Local Government Memorandum Circular 2011-151 stipulating the suspension of "pass through" fees.

"First, it is not a pass through fee and we're not imposing taxes on goods but the activity itself. The P300 per truck per day is regardless of the number of trips. Second, SKK was saying if we do not stop collecting from trucks delivering junk to them, they would close down. But right now they are still operational," the lady mayor said.

She said the provision on the town's tax code may have been "misinterpreted", lamenting the court's denial of their appeal last December 28 to "open books and establish essential facts."

"The decision was handed down January 3 this year without what we call round two of a supposed hearing. But we have to abide by the decision and rule of law. Our recourse now is to file a motion for reconsideration and follow due process," said Wong.