Thursday, August 07, 2008 Sta. Cruz pushes claim for 40% share in taxes By Nelson C. Bagaforo
DARONG, Sta. Cruz, Davao del Sur -- Mayor Joel Ray Lopez said Wednesday the Municipal Government is pursuing its claim for a 40 percent share in total revenues collected by the National Government from San Miguel Beer that operates a brewery plant here.
Lopez guested at the blessing and inauguration of P1.8 million SMB Community Clinic, an off-site diagnostic clinic set up by SMB at sitio Landing in Darong.
The clinic provides poor residents of the barangay access to free medical services.
Lopez said he already sent a letter to the central office of the Bureau of Internal Revenue (BIR), through its regional director Mercelinda Omila-Yap, asking for a computation of the taxes collected from operation of San Miguel Corporation (SMC) in Darong and determine how much of this amount will go to the local government.
He said the letter is also signed by Governor Douglas Ra. Cagas.
"We will be following up our request next week," he said.
The mayor said they are claiming for their share since SMC has started to operate its brewery plant in 1995.
"We learned that SMC is paying the government not less than P600 million in taxes annually. We want to know how much of this amount comes from SMC's operation in Sta. Cruz," he said.
"We are not asking from SMC because it already paid taxes to the National Government for the utilization of national wealth, which is water. Water is a major component in operating its brewery plant," added Lopez.
He refused to give an estimated amount, but said the claim could reach millions of pesos.
Lopez said their attempt to get a share from taxes derived by the National Government started in 2002 after the Department of Budget and Management (DBM) affirmed their plea to get a share from taxes paid by SMC.
"The DBM issued an opinion affirming our appeal. The problem lang is that the BIR has not provided them with the computation," he said.
Lopez said such move of the Municipal Government is provided for in the Local Government Code of 1991, under section 289, which states: "Local government units shall have an equitable share in the proceeds derived from the utilization and development of the national wealth within their respective areas, including sharing the same with the inhabitants by way of direct benefits."
Section 290, on the other hand, states that local government units (LGUs) "shall, in addition to the internal revenue allotment, have a share of 40 percent of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction."
Lopez said such share would be distributed to the provincial government, which will get 20 percent; municipal government, 45 percent, and the barangay, 35 percent.
