Petron, BEZ properties in Bataan to be auctioned

BALANGA CITY, Bataan — The provincial government is set to auction some P2.3 billion worth of properties owned by the country’s largest oil refinery and the Bataan Economic Zone (BEZ), which is considered the first export processing zone, for their failure to settle their unpaid realty taxes for the past 10 years.

Bataan Gov. Enrique “Tet” Garcia Jr. announced during the press conference that the Provincial Treasury Office (PTO) is readying for public auction on Oct. 17 at 9 a.m. at the capitol compound land, equipment and other properties owned by Petron Bataan Refinery Corp. (BRC) in Barangay Lamao, Limay town with an assessed value of P1.8 billion while that for the BEZ in Mariveles town is placed at P542 million.

According to Garcia, the BEZ failed to resolve its tax obligations from 1985 to 2006 for standard factory buildings, housings and dormitories, shopping and other commercial centers after the Pasay Regional Trial Court (RTC) Branch 115 denied the motion for reconsideration filed by Philippine Economic Zone Authority (PEZA) which is the mother agency of BEZ, which had sought tax exemptions and export privileges as a pioneering industrial zone in the country.

The BEZ, once known as the Bataan Export Processing Zone (BEPZ), was constructed in the early ’70s to encourage local and foreign investments with offers various tax incentives.

In the case of Petron, Garcia stressed that the provincial government is willing to compromise with the leading petroleum firm for a “win-win solution” which would be beneficial to both parties.

Records show that Petron (BRC) had outstanding tax obligations amounting to P1.8 billion from 1995 to 2006 reportedly incurred with their installation of high-tech machineries to meet the increasing market demand for petroleum products both in the local and foreign markets.

Garcia added the local government is reviewing the outmoded provincial tax ordinances and continuously improving its technical assessment capability to come up with correct and efficient collection of lawful taxes.

He said aside from the strict implementation of tax ordinances, the provincial government is also encouraging investments to create opportunities for employment and to attract small and medium enterprises in the countryside. — Raffy Viray