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Wednesday, August 10, 2005
Benguet to sell power firm's properties
By Jane Cadalig
BAGUIO CITY -- Benguet officials said they would be auctioning off properties of the National Power Corporation (Napocor) after the firm failed to pay franchise taxes to the province.
The Benguet Provincial Board (PB) adopted a proposal from the committee on ways and means recommending that Governor Borromeo Melchor and Provincial Treasurer Mauricio Ambanloc assess the real properties of Napocor in the province and auction them off in accordance with the Local Government Code.
The committee also suggested that the province's claim be annotated in all the tax declarations of Napocor.
The PB, in a resolution, earlier asked Napocor, through the Power Sector Assets and Liabilities Management (Psalm), to pay around P54 million in franchise taxes it owes the province.
The resolution's proponent, Provincial Board Member Juan Nazarro Jr., said the amount includes the interests and surcharges accumulated since 1995.
He also warned the province would exercise its option to possess and sell the properties of Napocor should it fail to settle the amount.
The PB committee on ways and means, chaired by Provincial Board Member Apolinario Camsol, reminded the provincial treasurer to fix the records to determine the exact amount of franchise tax to be collected from the power corporation.
The Psalm claimed it is exempted from paying taxes, including franchise dues, as provided for by Republic Act 9136 or the Electric Power Industry Reform Act (Epira).
But Provincial Legal Officer Arthuro Bataclao refuted this contention, saying the passage of the Local Government Code withdrew such an exemption.
He also said that since Napocor is not yet abolished pursuant to the Epira Law, it maybe appropriate that the franchise taxes be demanded from Napocor and Psalm.
(August 10, 2005 issue)
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