Lapu-Lapu demands full payment of taxes

CEBU, Philippines - Few days after receiving the P88 million partial payment from Mactan-Cebu International Airport Authority, the Lapu-Lapu City government demanded airport officials to pay the full amount of alleged unpaid real property taxes amounting to P1.7 million.

Aside from demanding payment for real property tax dues, the city also ordered MCIAA to pay their unpaid business taxes amounting to P200 million.

Lapu-Lapu City Treasurer Elenita Catagcatag personally handed her letter dated May 26, 2014 yesterday morning to MCIAA General Manager Nigel Paul Villarete.

The demand letter also supported a copy of a resolution approved by the City Council calling on the MCIAA to pay their local taxes to the city in relation to their commitment to pay the said taxes.

"We hereby remind you once more for the payment of your total real property taxes and business taxes considering that the full amount of the taxes are quite small compared to the amount you have received and the commitment MCIAA made to fully pay the taxes if it has enough funds to do so," portion of the letter read.

Catagcatag told reporters she met Villarete who received her letter hoping the latter would act on their demand.

In her letter, copy of which was made available to The FREEMAN, Catagcatag said at the outset they appreciated the initial payment made by the MCIAA last week.

Catagcatag further said they were delighted to hear that the MCIAA on April 23 was already paid more than P14 billion by the GMR-Megawide consortium for the administration and operation of the airport.

The city treasurer said the positive act of paying initial real property taxes to the city will help the city improve revenue generation in order to fund critical programs and projects.

Despite the initial payment, Catagcatag informed Villarete that as per city ordinance, their office cannot issue any tax clearance to the MCIAA unless and until full payment of realty taxes, penalties and surcharges, if any, has been made.

The City Council in a resolution said the payment made by GMR-Megawide to the MCIAA placed the latter in a position to exercise prudent corporate responsibility and pay their obligations to the city, adding the funds would be used to augment the schools and social duty in the city.

Villarete, however, stressed the P14-billion mentioned by the city officials coming from GMR-Megawide consortium could not be used for that purpose because it is under a "blocked account." The amount, he added, could only be released to finance consortium-related activities.

Villarete confirmed he received the demand letter from the city government of Lapu-Lapu personally handed by Catagcatag.

He maintained that the MCIAA board acknowledged their obligation to the city government, but said only to the extent of the lots leased to private corporations or those used for private purposes.

He stressed that it's the stand of MCIAA board not to pay real property taxes to the airport lot used by the national government like the taxiways, terminals and aviation.

The MCIAA and the city government of Lapu-Lapu have a pending case before the Supreme Court over the issue.

Meanwhile, Catagcatag has also requested from MCIAA a certified machine copy of their contract or agreement with GMR-Megawide as the same would be used as one of their references in computing the taxes that they will impose upon the said entity. (FREEMAN)