SETTLED. Panay Electric Company (PECO) on Monday settled its PHP134.9-million real property tax liabilities to the Iloilo City government. An agreement will soon be signed between the parties following the passage of a resolution by the Sangguniang Panlungsod (SP) authorizing Mayor Jerry Treñas to sign on behalf of the city relative to the settlement. (PNA photo by Perla G. Lena)
ILOILO CITY -- The city government here received roughly PHP134.9 million in additional funds for its coffers after Panay Electric Company (PECO) settled its real property tax (RPT) dues to the local government.
The payment was made Monday ahead of the authorization that was granted by the Sangguniang Panlungsod (SP) for Mayor Jerry Treñas to sign an agreement with PECO regarding the payment of tax dues on Tuesday.
The amount represents all of PECO's past and present real property tax liability, from 2006 until 2019, excluding interests and penalties that are the subject of Local Board of Assessment Appeals (LBAA) Case No. 2017-01 and LBAA Case No. 2019-02.
The full payment composed of PHP59.829 million constituted the principal amount of the first assessment, and is the subject of LBAA case 2017-01 and PHP75.093 million for the LBAA case 2019-02.
Councilor Eduardo Peñaredondo said the agreement was “very well crafted”.
He said the local government should get what is due to the city, referring to the interests and surcharges that could amount to PHP40 million.
“We authorize the mayor to sign the agreement without prejudice to the claims of the city of Iloilo as far as penalties and interests, especially in the case of 2017-01. The litigation will continue until we have no meeting of the minds,” he said.
Peñaredondo added the PHP134 million is a “big boon to the people of Iloilo City, especially that Mayor Treñas is in the full-scale of implementing projects”.
PECO head of Public Engagement and Government Affairs Marcelo Cacho said it will be up to the court to decide whether or not the city government will charge interests.
With the settlement, the agreement provides the local government cancels its scheduled Dec. 12 auction for the properties covered by the subject tax declarations, and issue all appropriate permits to PECO for the operations of its business subject to compliance with the Iloilo Tax Code.
Meanwhile, Treñas said what happened was a “welcome development” because PECO’s RPT has been pending for the past three years.
“With this, we can properly fund programs intended for much improved social services and other initiatives that would benefit the Ilonggo community in our quest to bring Iloilo City to the next level,” he said. (PNA)
