Muncipality of Negros Oriental to collect US$ 2 million from EDC
Local municipality of Negros Oriental to collect US$2.3 million in property tax from EDC for plants taken over from PNOC.
While this might not be as interesting for the general public, the following news might give an indication for some developers what to expect developing projects in the Philippines and other regions.
“The Negros Oriental government is expecting to collect some P100 million in real property tax from the Energy Development Corp. that had bought the right to harness geothermal power from the government-owned Philippine National Oil Corp. more than a year ago in Valencia, a town about 11 kilometers west of Dumaguete City.
Provincial treasurer Danilo Mendez yesterday he had written to the management of EDC indicating the intention of the province to collect the real estate tax from the corporation beginning next year.
In the past, the province cannot collect real property tax from PNOC, because being a government-owned corporation, it is exempted from real estate tax, Mendez said.
But since the right to harness the geothermal power is privatized, the local government can now collect the real property tax, he pointed out.
Mendez also said the EDC, which is controlled by the Lopezes, knew from the start it will have to pay real property tax. He said the tax will be divided by the province, the town of Valencia and barangays Puhagan, Caidiocan and Malaunay, where the real properties of the corporation are located.
The province will get 35 percent; the municipality’s share is 40 percent; and 25 percent will go to the host barangays, he added.”
Source: Visayan Daily Star