Mirant fails to pay P72 million tax

By January 7, 2007Business, News

LINGAYEN — Mirant Corporation, which operates a coal-fired power plant in Sual town, has failed to settle P72 million in real property tax (RPT) for 2006 to the provincial government, Provincial Treasurer Ramon Crisostomo told The PUNCH.

Crisostomo said if the amount remains unpaid, vital projects of the provincial government will be imperiled.

“Mirant is a very big factor in our RPT collection in Pangasinan,” he said.

He added that he called Sual Municipal Treasurer Priscilla Ramos Wednesday to ask her to furnish him copies of notices as well as demand letters sent to Mirant so he can refer this matter to the provincial legal officer for appropriate action.

RPT can be paid quarterly and the taxpayer is given a 10% discount as incentive for early payment. On the other hand, a 2% surcharge on top of the total amount due is collected for late payments.

Mirant has reportedly been facing financial problems which led to the sale of the company amid labor issues.

In 2005, Mirant entered into a negotiated payment of its RPT and other tax dues from 2003 to 2005 to the province after it lost in the legal battle filed by the provincial government of Pangasinan. Mirant had to settle a total of P196 million.

Aside from the provincial government, the municipal government of Sual and barangay Pangascasan, where the coal fired power plant is located, will also be affected by Mirant’s non-payment. — EVA

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