Bulacan to file charges vs cement company for tax misdeclaration

MALOLOS CITY, Philippines – The provincial government of Bulacan is set to file charges against a giant cement firm based in Norzagaray town for failure to pay back taxes amounting to more than P765 million.

This came as the provincial treasurer’s office intensified tax collection saying that a total of more than P1.5 billion in back taxes are still to be collected by the province from Holcim Cement, National Power Corp. (Napocor), Manila Water Services Inc., (MWSI), and the operator of the North Luzon Expressway. 

“We will file charges against Holcim Cement anytime soon because of their misdeclaration of their real property taxes,” said Belinda Bartolome, head of the PTO.

Based on records obtained by The STAR, Holcim Cement owes over P765 million to the provincial government.

Bartolome said that the back taxes stemmed from Holcim’s acquisition of new machineries way back in 1998. 

However, she said that the newly acquired machine was not included in the tax declaration of Holcim which is said to be producing at least 150,000 bags of cement everyday from their plant in Barangay Matictic, Norzagaray. 

Bartolome noted that they based their assessment on Holcim’s financial statement and they have already given the company a notice of assessment which lapsed on Aug. 17.

For their part, officials of Holcim who made a presentation last Monday before the PTO and the municipal administrator of Norzagaray town claimed that they will file a petition against the back taxes being collected from them. 

One of them said that they have already paid the said taxes. 

To date, Holcim is only paying about P43 million in real property taxes to the municipal government of Norzagaray. 

For his part, Gov. Willy Alvarado said that it’s the right of Holcim to contest the tax collection.

He said that Holcim can always file a protest on the Board of Local Assessment Appeal. 

Aside from Holcim, the provincial government is also running after Napocor and MWSI which both maintain offices in Norzagaray town, and the operator of the NLEX in Guiguinto town. 

Records showed that Napocor has arrears to the provincial government amounting to over P170 million; MWSI, P580 million and NLEX operator with P4.3 million. 

Earlier, Mayor Feliciano Legazpi of Norzagaray town said that they are demanding about P1 billion in back taxes from giant cement companies in their town. 

Legazpi was referring to officials of Holcim, Lafarge and Republic Cement factories based in this town which is rich in silica, a major component of cement production.