TeaM Energy exec explains tax payments to LGUs

SUAL, Pangasinan, Philippines – An executive of Team Energy that operates the 1,200-megawatt (MW) power plant here said “it’s like comparing apples and oranges” on the question of the mayor here about much lower business taxes paid by this entity to the town treasury office compared to the 460-MW plant in Mauban, Quezon.

In a statement yesterday, Froilan Gregory Romualdez III, senior manager for external affairs of TeaM told The STAR that “local business tax payments are not based on the megawatt capacity of a plant. These are based on a percentage of a company’s gross receipts.”

He added: “It is possible that we have a lower rate for the electricity we sell compared to other plants, thus, lower gross receipts, and consequently lower business tax payments. Furthermore, business tax rates may vary from LGU to LGU.”

“We are a responsible corporate entity that pays its rightful taxes on time and in full,” he said.

He said they take pride in being recognized through many awards and recognitions for being a top tax payer in the region.

 â€œSuffice to say, we deeply value our relationship with Mayor Arcinue and the Sual local government. We intend to remain as their partner in bringing progress and development to the municipality,” he added.

Mayor Roberto Arcinue raised the issue on business and license taxes paid by the Sual power plant amid concerns on the proliferation of fish cages near the plant site.

Arcinue said records given by their municipal treasurer showed this year Mauban  which generates only 460 MW paid to the LGU P95,106,000 while the Sual plant, a 1,218 MW, paid just a little more than P34-million to the treasurer’s office here.

“Our treasurer is wondering why they (Sual plant) is paying smaller taxes. There is a whale of difference,” Arcinue said.

The mayor said they would study well this matter and would write President Aquino, the Department of Energy and lawmakers led by Pangasinan first district Rep. Jesus Celeste for a possible congressional probe of the Sual power plant as “it pays lesser amount.”

“They have to pay the correct amount,” Arcinue said.