Mayor: Kidapawan losing money from EDC tax exempt

The government of Kidapawan City is losing some P45 million from Energy Development Corp. (EDC) after the energy firm has exempted itself from paying real property taxes for its facilities, the city mayor said Sunday. The geothermal leader is no longer obliging itself to pay taxes for its distribution pipes, production wheels, administration buildings, and the land area where its geothermal power plant is situated, Kidapawan City Mayor Rodolfo Gantuangco said. The EDC cites the provision of the Republic Act 9136 as saying that real property taxes shall only be imposed on the power plant and not its facilities, the mayor said. According to EDC, it only has a resource development and generation facility in Mt. Apo in Kidapawan City, Gantuangco added. This year, the EDC has so far paid the city government some P13 million worth of real property taxes after a 20-percent discount for early payment, the mayor said. City government lawyers are now preparing to contest before the Supreme Court EDC’s exemption from real property taxes, the mayor said, noting that half of the P45 million could be allocated to the Special Education Fund or SEF. SEF finances the salary of teachers and the construction of school buildings. “It is sad to note that the most affected sector [in] this real property tax cut is our education sector. This might perhaps hamper our delivery of quality education especially to those who are in the hinter villages," Gantuangco said. Particularly, the salary of some 200 SEF teachers might even be decreased, he said, pointing out that they only receive P9,000 a month. The construction of school facilities such as fences, comfort rooms, stages, as well as book supply might also be affected, he added. —With Jesse Edep/VS, GMANews.TV