Firms owe Pasay P3-B in real estate taxes

Cash-strapped Pasay City could be P3.2 billion richer if only delinquent taxpayers, particularly Government Owned and Controlled Corporations (GOCCs), settle their dues, a city hall official said yesterday.

The Philippine Estates Authority (PEA), which manages the reclaimed land along Roxas Boulevard, owes the city government at least P2-billion in unpaid real estate taxes, said city administrator Ernestina Carbajal. Aside from PEA, the Ninoy Aquino International Airport (NAIA) management owes the city P754-million; and the Light Rail Transit Authority (LRTA), P400-million. On the other hand, the Metro Rail Transit Corp., (MRTC), which entered into a build-lease-transfer contract with the national government, owes Pasay some P47-million.

"We couldn’t build school buildings, we have lesser teachers, and we couldn’t allocate more funds to the barangays because of this non-payment of taxes," Carbajal said.

At the very least, she added, the LRTA has paid a "small amount" to the city government while PEA has offered to "swap" five-hectares in the reclamation area in exchange for its debt being written off. "This goes to show that these GOCCs are admitting their liability," Carbajal said.

A memorandum of agreement (MOA) between Pasay City and PEA is set to be signed next week, Carbajal said, adding that a new city hall may be constructed on the reclamation area.

Meanwhile, the city council on Tuesday approved an ordinance allowing a 50-percent increase in the assessment on commercial real properties and a 40-percent increase for residential real properties , spread in three years. The ordinance shall take effect on the third quarter of this year, upon the approval of City Mayor Wenceslao "Peewee" Trinidad. Pasay City last increased real estate taxes in 1997. The Local Government Code mandates an increase every three years. – Nikko Dizon