Buseco owes Malaybalay City P14-M tax arrears

By Erlow Talatala

MALAYBALAY CITY – (Bukidnon News Dispatch/10 September) The Bukidnon
Second Electric Cooperative (Buseco) owes the City Government of
Malaybalay with a total of P14 million arrears in real property taxes,
city treasurer Danilo Linoay told the Sangguniang Panlungsod on Sept.
6, 2011.Linoay reported during the city council’s 32nd regular session that as
of Sept. 5, 2011, Buseco has accumulated real property tax arrears
amounting to P 14,040,661.78 with a breakdown of
P9,059,661.78 as principal and P4,981,433.22 as penalty.

Accompanied by Arsenio Macas of the City Assessor’s Office, Linoay
appeared before the city councilors to shed light to Buseco’s long
over-due real property tax due.

The penalty bloated to almost P5 million, Linoay said, because Buseco
allegedly did not pay in the last six years.

He noted that they met with Buseco general manager Edgardo Masongsong
on the matter. Instead of paying, he added, the latter asked that the
penalty be condoned.

City Councilor Roland F. Deticio said that the request could be denied
as the city’s tax amnesty period has lapsed. He added that the City
Treasurer’s Office must issue a final assessment and demand.

The move, Deticio said, would give justice to the owners-consumers of
BUSECO. He said Buseco has already charged the consumers with real
property fee.

Vice Mayor Victor P. Aldeguer opted for the city council to defer its
decision for a week “to thoroughly review the matter for appropriate
and concrete action.”

Bukidnon News reported earlier that Buseco owes the provincial
government about P20 million while the First Bukidnon Electric
Cooperative (Fibeco) owes P23 million real property tax arrears.

In a press conference on March 14, two days before their provincial
board appearance, the two firms said they have paid P5 million each as
down payment and vowed to pay the remaining amounts on installment
Payment for the real property taxes also meant increase in power
rates. For incurring an eight-year loan to pay the P5 million down
payment, Fibeco charged its consumers additional P0.20 per kilo watt
hour. But Buseco, which obtained a shorter period of three years for
the same amount of loan, is charging P0.34 per kilo watt hour.
The two firms have negotiated for exemption of real properties in
missionary areas or where they are not earning.
The managements of the two firms announced in an earlier press
conference that the provincial government wanted to impose real taxes
but did not want the two firms two charge the increase to the

The provincial government filed charges against the two firms last
year, prompting the down payments. (Erlow Talatala)


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