SEALED and delivered.

The provincial government has collected from Team Sual Corporation the sum of P160.8 million, representing the Sual Coal Fired Power Thermal Plant’s (SCFPTP) real property tax liabilities covering the period January 1, 2006 to December, 2007.

An SCFPTP check in the amount of P160,838,136.58 was handed over by Team Sual Corporation president Federico Puno to Pangasinan Gov. Amado T. Espino, Jr. immediately after the signing of a memorandum of agreement at the power plant last week.

The amount was broken down thus : P142,650,232 as the plant’s tax liability, plus another P18,187,904.58 in accrued interest, penalties and related charges.

Provincial Treasurer Ramon Crisostomo said the real property tax was based on the 10 percent assessment level as provided under the provincial tax ordinance.

The amount paid is computed at two percent of the assessed value. One percent of which, represents the basic tax for the Special Education Fund (SEF) amounting to P80,419.068.29 and it will be shared equally by the province and the municipality of Sual.

The other one percent will be shared among the province (35%) or P28,146,673.90, municipality of Sual (40%), P32,167,627 and the host barangay (25%), P20,104,767.

The SEF share of the province will go the provincial school board for the construction and repair of school buildings, purchase of books, chairs and other related supplies and projects.

The remaining 35% share of the province from the other one percent will go to the provincial government’s general fund.

Aside from the tax on its machineries and equipment, the Sual power plant will also pay a P 2- million land tax annually..

Under the MOA, Team Sual Corporation is required to make up-to-date payments of its real property tax to the province, while any subsequent delinquency would incur penalty and charges.

“I hope this would be the last time that we will sit on the negotiating table and I expect that there will be no more signing of MOA next year,” Espino said .

Before the MOA signing, the sangguniang panlalawigan had unanimously approved a resolution numbred 89-2007 authorizing the governor to enter into an agreement with the Team Sual Corporation.

Earlier, the municipality of Sual, as deputized collection agent of the province, sent a notice of delinquency and final demand letter to National Power Corporation and Mirant Sual Corporation after its petition for tax exemption filed with the Local Board of Assessment Appeal was denied last July 10.

Puno, who took over the operation of the power plant in Sual on July 15, subsequently said that Team Energy agreed to assume the unpaid tax obligations of the plant’s former owner, Mirant Corporation.

According to Provincial Assessor Nestor Quiambao, under the new provincial tax ordinance enacted last December 2006, the real property tax assessment level of the Sual power plant has increased from 10% to 80%, which means it has to pay the provincial government a total of P570 million in real property tax in ensuing year.

He also revealed that his office has already implemented the 80 percent on the RPT assessment level on the San Roque Multi-Purpose Dam Project which is due to pay its tax obligation this December.

Aside from Espino and Puno, the other MOA signatories were Sual Mayor Rodney V. Arcinue and Barangay Capt. Dionisio Caburao Sr. of Pangascasan, Sual, host barangay of the power plant. (Merly R. Tibalao/PIO)