Council may waive PLDT tax penalties

The city council has scheduled for next week's session a proposed ordinance making official and legal the condoning of interests and surcharges of the franchise tax of the Philippine Long Distance and Telephone Company.

PLDT already paid to the city its franchise tax from 1996 to 2003 amounting to P41.39 million two years ago, but excluding interests and surcharges or accumulated penalties, which reached a total of P34 million.

Mayor Tomas Osmeña at the time had decided to waive these penalties so PLDT paid its principal tax dues in three staggered payments. But then condoning PLDT's penalties has no legal basis until now because there has been no city ordinance to back it up.

This prompted PLDT's Rogelio Quevedo to write , last June 24, city council's secretary Estrella delos Reyes requesting the city council to adopt an ordinance for such purpose, citing a local government code provision that only the city council could grant tax exemption privileges.

"Rest assured we will be prompt in the payment of future franchise and any other taxes that will be due to the City of Cebu," said Quevedo adding that the requested condoning of penalties covers only those from 1996 to 2003.

To show PLDT's willingness to pay its franchise tax dues, it paid promptly last year's P8.7-million taxes for its three sites in the city. For this year, it has paid so far P6.6 million for its P8.7-million due.

In response, councilor Jose Daluz filed yesterday the proposed measure legalizing the act of condoning the seven-year tax penalties of PLDT. This is up for deliberation in next week's regular session.