Davide: MCIAA P1.7B tax payable ‘too big’

CEBU, Philippines - Governor Hilario Davide III finds the P1.7 billion, which the Mactan Cebu International Airport owes the Lapu-Lapu City Government in realty taxes, too big.

Davide said the P23 million which airport General Manager Nigel Paul Villarete offered to pay has to be passed before the MCIAA Board where he sits as member.

“The board will still deliberate on that kung sakto ba gyud kay P1.7 billion is daku kaayo na, (The board will deliberate if the amount is correct because P1.7 billion is too big.)” he said.

Davide said the matter was initially discussed during their meeting held in Manila recently.

According to the governor, Villarete reported that MCIAA can pay and he still has to draft the memorandum of agreement to be presented before the board.

Villarete reportedly wrote Lapu-Lapu City Mayor Paz Radaza and presented drafts of the two MOAs regarding his offer to pay P23 million in real property taxes provided that the City drop its pending case before the Supreme Court (SC).

Another P10 million was also offered as financial assistance for projects of the City Government that will be implemented adjacent to the airport.

Radaza reportedly declined the proposal saying that proposed MOA states their payment of real property taxes is limited to MCIAA properties that are totally used for commercial purposes.

A portion of the MOA reads that MCIAA is willing to pay real property tax for its commercial lots or those leased to private properties for the period of 2004 to 2013.

Radaza also questioned the inclusion of a general waiver, which means the City would give up all potential tax earnings on other MCIAA properties.  (FREEMAN)