Iligan City gov’t agrees to recall, suspend tax levy on National Steel

Iligan City – The city government here has agreed to recall and suspend the tax levy it imposed last month on National Steel Corp. (NSC).

This, after the Securities and Exchange Commission (SEC) recently ruled that the local government unit cannot impose the levy until the assets of the closed NSC steel plant here are sold.

The city government of Iligan, on Aug. 3, this year, unanimously passed City Ordinance No. 04-4594 ordering the City treasurer and other concerned officials to proceed with the tax levy and other administrative remedies for the collection of the unpaid NSC real estate taxes from 1999 up to the present, which is estimated at P928 million.

The recent SEC ruling that followed, forced the city council to recall the City Ordinance No. 04-4594.

In the City Council’s regular session last Tuesday (Aug. 31), the body reiterated its Aug. 12, 2004 Resolution No. 03-662, expressing "its intention and commitment to grant tax relief, exemptions, incentives and holidays to the duly qualified firm, corporation or entity whether the same be of private ownership or government owned or controlled corporation, which shall operate all of the present plant facilities of NSC such as the billet shop, cold mill, tot mill and support facilities on a long-term basis and under such terms and conditions as may be agreed upon by the City government, the city council and the said investor."

The Ispat International, whose subsidiary Global Steel Works International Inc. undertook the rehabilitation of the NSC plant here last April, this year and completed it by the end of July, this year.

The NSC liquidator, bank creditors and the Global Steelworks are now working for the final agreement for the latter’s acquisition of the steel plant