|
Saturday, May 10, 2003
PPA not exempt from realty tax -- Lagahit
By Adrian S. Sedillo
Dumaguete City's acting legal officer clarified Wednesday that local government units (LGUs) have the power to collect real property tax from the Philippine Ports Authority (PPA).
Acting city legal counsel Neil Rey Lagahit issued the statement to complement remarks by Mayor Agustin Perdices issued in reaction to criticisms that the City Government has neglected its duty to tax the port agency.
Lagahit said the city treasurer's office sent last year a demand letter to PPA for the latter's more than P16 million unpaid realty property tax up to year 2001.
He explained that PPA, in response to the demand letter, requested putting off payment until after the Supreme Court resolved a similar tax collection case involving the port agency and the City Government of Iloilo.
The acting city counsel said that PPA was depending on Section 14 of its charter and Section 133 of the 1991 Local Government Code for refusing to pay the tax.
Section 133 limits the LGUs' authority to impose taxes on government agencies and instrumentalities.
Lagahit stressed that government agencies must understand that the 1991 Local Government Code was drafted to strengthen local autonomy and discourage LGU dependence on the national government.
The Code, he explained, has removed most exemptions granted to juridical or natural persons except those on schools, cooperatives and hospitals.
Lagahit said PPA was not included among those not exempted from paying real property taxes.
He cited the Mactan Airport-Marcos case in which the Supreme Court ruled in favor of taxing the airport. Lagahit said airports and seaports share a common status.
On the other hand, Lagahit said the city mayor and the City Council have agreed to respect the PPA request to suspend payments pending a court decision on the PPA-Iloilo tax case.
(April 28, 2003 issue)
Want Sun.Star news on your mobile phone? Click here.
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[ return
to top ]
[ home
]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
|
