Taxes from power plant plummeting

December 19, 2016 at 2:26 pm Leave a comment

By Yolanda Sotelo
SAN MANUEL -The local business tax paid by the San Roque Power Corporation to the local government of this town  plummeted from P33.4 million in 2014 to P21 million in 2015.
This eastern Pangasinan town hosts the hydro power plant, one of the components of the San Roque multi-purpose dam.
But being a host of the power plant does not mean high income for the town, Vice Mayor Salvador Perez said. The taxes from the SRPC which operates the plant has plummeted down.
In a letter,  SRPC Vice President for Finance and Treasurer Rheena de Guzman  told San Manuel Treasurer Elizabeth Corpuz that the decrease was mainly due to the change of the rates on the Power Purchasing Agreement of the SRPC with the National Power Corporation.
She said according to the eight schedule of the PPA, effective on the 13th contract year or May 25, 2015, the tariff rates for the US dollar capacity fee component will drop down from P59.66 to P20.50 US dollar/kilowatt.
This will further drop down in contract year 21, she said.
Corpuz said SRPC finance officials have informed the local government officials that the taxes that the company would be paying could only be P9 million.
On the other hand,  business tax paid by San Miguel Corporation which purchases the power generated by the plant, paid a whooping P37 million in 2016,  triple the amount it paid in 2015 which was P17.2 million.
But SMC started paying business taxes only in 2015 after a five-year tax holiday, Corpuz said.
The five-year tax holiday ended on June 30, 2014, so the P17.2 million was taxes only from July to December, 2014.
Next year, SMC is expected to pay a “much lesser amount” of tax on gross sales because of low power production this year, she said.
Corpuz said the projected amount of taxes to be paid by SMC next year is only P21 million.


Entry filed under: News.

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