Osmeña says condonation should be applicable to all

A City Council committee is positive in its assessment of a proposed ordinance condoning the P34 million tax penalties imposed upon Philippine Long Distance Telecommunications, but Mayor Tomas Osmeña said the same treatment should be given to other companies seeking to have their penalties condoned.

"Condonation should be for everybody so that we will not be accused of favoring a party," Osmeña said yesterday.

He explained that he does not necessarily consider the P34 million penalties as taxes, as this is already on top of the P41 million that the city government is supposed to collect from the telecom firm.

PLDT has already deposited P41,392,939.97 in escrow in favor of the city government as franchise tax from 1996 to 2003.

The council committee on laws, ordinances, public accountability and good governance has described it "fair and equitable" to condone the interest and surcharges imposed upon PLDT.

The committee, headed by Councilor Edgardo Labella, pointed out that if it would not condone PLDT's interest and surcharges and opt to litigate, a lot of time would be consumed from waiting for the resolution of the case.

"Time, money, effort and goodwill will be saved and would be worth the condonation. Nobody takes undue advantage over the other," the committee said.

Early on, Osmeña said the penalty has to be condoned otherwise the city cannot spend the P41 million that PLDT paid as a compromise in 2003. The city and the telecom firm reportedly agreed to condone the penalties first.