City benefits from telecom firm's franchise tax payment
The franchise tax of P6,555,294.14 recently paid by the Philippine Long Distance Telephone Company (PLDT) to the city government will be allocated for the poverty alleviation fund and livelihood programs intended for the poor city residents.
Other than the poverty alleviation fund and livelihood programs, portions of the franchise tax will be spent for infrastructure and road projects in the city. The poverty alleviation and giving of livelihood programs to the growing number of city residents is one of concerns of the government.
The P6,555,294.14 franchise tax covers the company's franchise obligation to the city government from 1998 to 2003. The payment included surcharges and interests. The telephone company paid the city government of its obligation after the Supreme Court ruled in favor of the city government. Earlier, PLDT questioned the decision of the lower court and made an appeal before the higher court which ultimately turned down their plea.
PLDT is only one of the utility companies which operates in Iloilo City with pending tax obligation to the city government. The Iloilo City Legal Office had been in the forefront over the number of tax cases involving the city government.