LINGAYEN–Digital Communications of the Philippines (Digitel) has paid P13 million to the provincial government for its franchise tax from the time it started operations in Pangasinan in 1993.

The payment came after the province of Pangasinan agreed to a settlement in its case against Digitel which has reached all the way to the Supreme Court.

Provincial Legal Officer Geraldine Baniqued said there would have been no problem in the execution of the decision because Digitel could not show its books from the 1990s.

But when representatives from both sides sat down again to discuss the matter, the company offered to pay P13 million, which was eventually accepted by the province.

The P13 million, Baniqued, said was the estimated amount of franchise tax that Digitel owed the province.

Baniqued said the provincial government was also prompted to accept the offer after learning that Digitel has been acquired by the bigger Philippine Long Distance Company and the province did not want to deal with a new management over the same issue.

With the settlement of back taxes, Digitel is expected to pay its franchise tax from year 2010 onward, computed at one half of one per cent of gross income for the preceding year.–LM

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