NPC hands over P11-M San Roque tax payment

The National Power Corporation last week handed over to the province of Benguet a total amount of P11.9 million representing the share of the province from the national wealth tax derived from the operation of the San Roque Dam.

The payment, the first since the dam was made operational in 2004, covered calendar years 2004 to 2007, and was similar to the amount received by the province of Pangasinan.

“This is a historic moment for the province,” Benguet Gov. Nestor Fongwan said as he led provincial officials in receiving the amount from NPC general counsel Melchor Ridulme.

Ridulme was accompanied by finance manager Lucio Estangco, department manager Gordon Montejo, and legal counsel Fritz Somyden.

It was the first time both provinces received their share from the national wealth tax as hosts of the San Roque Dam.

Last month, the governors of both provinces signed a memorandum of agreement binding their respective provinces to an equal sharing of the national wealth tax arising from the operation of the 345-megaWatt San Roque Dam project.

Under the agreement, the proceeds of the national wealth tax obligations shall be divided equally or on a 50:50 basis as far as provincial tax share is concerned.

The collection shall be retroactive since the start of the operation of the dam to the year 2010.

Fongwan said the agreement was based on the provision of the Local Government Code that provides for the equitable sharing of proceeds derived from the use and development of the national wealth.

“In this instance, the San Roque plant and dam is located in the territorial jurisdictions of Pangasinan and Benguet while the water source that supplies the dam comes from the upstream of Agno River in the province of Benguet,” he said.

Before the signing, both provinces with the concurrence of their respective provincial boards agreed to settle the issue on a percentage-sharing basis.