City gov’t to collect P30M in taxes from Capelco
ROXAS CITY – The city government is set to collect P30 million pesos in unpaid taxes for 13 years from Capiz Electric Cooperative, Inc (Capelco).
Atty. Napoleon Oducado, city legal counsel, said in a radio interview that Capelco has unpaid taxes from 1997 to 2009.
This developed after the Supreme Court ruled that Capelco is no longer exempted from tax privilege pursuant to Sec 193 of the Local Government Code.
It was learned that PHILRECA had petitioned the taxing powers of provinces, cities and municipalities on cooperative as provided for under Section 137, 143 and 232 of the Local Government Code.
According to Oducado, Capelco is not registered with Cooperative Development Authority (CDA) thus it cannot enjoy tax exemption privileges.
The city legal counsel also said that the taxes to be charged versus Capelco are franchise tax, business tax, gross receipts of electric cooperative (sec. 3 of the circular), real property of electric cooperative (Sec. 4) and mayor’s permit fee and other regulatory fees. (Sec. 7).
On the other hand, Charlita A. Castro, Licensing Officer 11, Business Permit and Licensing Division had sent letter to the manager of Capelco advising the latter to secure the necessary mayor’s permit and pay all the regulatory fees in addition to the tax liability for gross receipts and real property taxes.