Stop taxing consumers, Agusan power firm told

BUTUAN CITY , Philippines  â€“ A judge has ordered the Agusan del Norte Electric Cooperative, Inc. (ANECO), the only power supplier in Agusan del Norte and Butuan City, to stop collecting taxes from its consumers.

Citing a tax exemption certificate from the Bureau of Internal Revenue (BIR), Judge Francisco Maclang  issued a 20-day temporary restraining  order (TRO) against the ANECO.

The TRO, dated Oct. 24, stemmed from a class suit filed by eight consumers against the ANECO and its officers, headed by general manager Horacio Santos.

Maclang set the hearing on Nov. 12 for the preliminary injunction, which would determine whether the TRO would be lifted or not.

The eight complainants were city councilor Sergio Pascual, Romeo Catalan, Maryknoll Abejay, Gregorio Dizon, Antonio Mordeno Jr., Mariano Montilla, Clementine Cordova, and Hermenia Sanico.

Maclang said the BIR issued the certificate of tax exemption to ANECO after the power firm was converted into a cooperative in November 2011 by the Cooperative Development Authority.

The certificate exempted the power firm from paying value added, income, percentage and excise taxes.

The BIR spared the consumers from paying system loss taxes, VAT revenues on distribution  supply, metering, and lifeline subsidy.

The certificate is valid for five years from date of issuance.

However, the complainants alleged the ANECO continued to collect taxes from them.

ANECO spokesperson Danny dela Serna on Friday told journalists that they would question the TRO.