A government-owned and controlled corporation (GOCC) has given the National Government more than P300 million from last year’s income, while another is on track to contribute at least P200 million.
Cebu Port Authority (CPA) General Manager Angelo Verdan said the CPA has remitted to the National Treasury more than P300 million.
Under the law, a GOCC must share with the National Government an amount equivalent to 50 percent of its net income every year, after taxes, Verdan explained.
For his part, Mactan Cebu International Airport Authority (MCIAA) Assistant General Manager Glenn Napuli said that while they have allocated more than P200 million as the National Government’s share, this is still subject to an official endorsement by the MCIAA Board, which will meet next week.
As of July 2018, 51 GOCCs have remitted some P30 billion.
Last year, the CPA made more than P700 million net. After they paid taxes to the Bureau of Internal Revenue, they split the balance of more than P600 million, of which half went to the National Government.
Verdan said the CPA, which has its own charter, took the opportunity of funding projects out of its income from all ports in Cebu.
In the Cebu International Port’s (CIP) operation, the income from cargo handling is shared by CPA and the Oriental Port and Allied Services Corp. (OPASCOR).
Under the law, OPASCOR will get 80 percent of the gross income from CIP operations, while CPA will get 20 percent, on condition that all workers must own OPASCOR, which is the exclusive cargo handling provider at CIP.
Verdan explained that at the time when Cebu ports were still under Philippine Ports Authority, all its income was remitted to the National Treasury. Only a portion was returned to Cebu to repair roads, light streets or maintain public safety.
Its charter allows CPA to fund projects to improve facilities and services, before declaring a net income and sending 50 percent of that to the National Government. (EOB)