Cebeco pays P10-million tax to Capitol

CEBU, Philippines - At least two power distributors have started paying real property taxes to the Province of Cebu.

Cebu Electric Cooperative II paid P10 million as partial payment of its tax obligation to the provincial government.

Cebeco II officials turned over the check to Governor Gwendolyn Garcia during a meeting last Thursday. Cebeco II has already paid a total of P22 million out of its P29.4 million tax payable to the province.

Cebeco I on the other hand has paid P5 million out of its P20.2 million tax obligation.

The Province of Cebu has a total collectibles of P70.7 million from the three electric cooperatives including the P21 million from Cebeco III.

During the meeting, Garcia gave the power utilities until June 30 to pay their obligations.

Garcia said their positive actions can bolster the Capitol’s case against other power distributors who also failed to pay their real property tax dues to the government.

Garcia said the money will go to the delivery of basic services across the province.

The Province of Cebu is set to auction the real properties of two other power companies on July 2 after they failed to pay taxes.

Aside from the property of Mactan Electric Company (MECO) in the town of Cordova, the province is also set to auction the assets of the National Grid Corporation of the Philippines (NGCP) in the towns of Samboan and Daanbantayan.

MECO has a tax delinquency of P2.9 million while the NGCP has a delinquency of P192 million.

Last March, Garcia called a meeting with MECO, NGCP and other companies to discuss their “franchise and real property tax delinquency.”

In the said meeting, they were told to settle unpaid real property taxes.

The Capitol has already sent demand letters to MECO and NGCP on October 13, 2011 and March 27, 2012, respectively.  (FREEMAN)