SN ABOITIZ Power (SNAP) and the Benguet province officially signed the Compromise Agreement on Real Property Tax for the municipalities of Bokod, Itogon.
This is after both parties decided to settle the P160 million tax overpaid by SNAP from 2014-2016.
The tax was derived from the operation of the 105-MW Ambuklao hydroelectric power plant.
SNAP Chief Corporate Services Officer Mike Hosillos said in 2013, the provincial board of Benguet passed Ordinance 10-139 to reduce the assessment levels of buildings and structures from 80 percent to 40 percent and became effective in 2014.
“But what happened was, the corporation was assessed at 80 percent taxes from 2014 until 2016 amounting to P160 million. But rather than fight it out and prolonging it in court, we decided for a voluntarily agreement to compromise with the local government of Itogon, Bokod and Benguet,” Hosillos said.
Hosillos added the company has not been remiss in paying their tax due to the province which prompted both province to sign the compromise agreement.
“It is very edifying and it feels good to see how both parties can work together for our constituents and resolve issues like this, I look forward to working with you soon,” SNAP Executive Vice - President and Chief Operating Officer Joseph Yu said.
Benguet Governor Crescencio Pacalso meanwhile expressed his appreciation for making the compromise agreement possible.
“We know that in the province, we consider everyone as constituents and we want to make sure that everyone to be in good terms. We hope that in the act of finalizing the agreement, this will help all the communities involved,” Pacalso said.
Pacalso added the funding will be used for the rehabilitation of the province after two devastating typhoons. (Elamae Membrere)