Cebu Provincial Board to Scrutinize P211.56 Million Quarry Tax Compromise
Cebu Vice Governor Glenn Anthony Soco has assured the public that the Provincial Board (PB) will conduct a thorough review of the proposed compromise settlement between the Cebu Provincial Government and Apo Land and Quarry Corp. (ALQC). Soco emphasized the critical need to consider the implications of this agreement for ordinary taxpayers, stating that the review is essential to ensure the province's Local Revenue Code provides equal protection to all citizens.
Legal and Financial Questions Raised
In his remarks, Soco highlighted that the first question to address is whether the compromise agreement itself is appropriate before delving into the specific financial details. "Mao bitaw nga ang unang question… angayan ba, before we even move further to pila," he said, underscoring the importance of legal and ethical considerations in this matter.
The proposal will be examined in a joint committee hearing by the PB committees on laws, review and ordinances, chaired by Board Member Nelson Mondigo, and ways and means, chaired by Board Member Michael Villamor. This resolution was initially included in the PB agenda on February 23 but was deferred during the board's regular session, indicating the complexity and sensitivity of the issue.
Significant Reduction in Tax Assessment
In a media interview on Wednesday, March 6, Cebu Governor Pamela Baricuatro revealed that the proposed compromise settlement has reduced the province's original P1.218-billion tax assessment against Apo Land and Quarry Corp. to P211.56 million. Baricuatro explained that this substantial reduction is primarily due to the removal of extraction fees, which constituted the bulk of the initial assessment.
The decision to eliminate these fees was based on the determination that the company's quarrying operations were conducted on private land. Restituto "Resti" Arnaiz, legal officer of the Office of the Governor, cited a Supreme Court ruling to support this move, clarifying that extraction taxes apply only to materials taken from public land.
Ensuring Fairness and Transparency
The review process led by Vice Governor Soco aims to ensure that the settlement is fair, transparent, and in compliance with legal standards. By focusing on taxpayer protection, the Provincial Board seeks to uphold the integrity of the Local Revenue Code and prevent any potential inequities. This case highlights the ongoing challenges in balancing economic activities, such as quarrying, with regulatory and fiscal responsibilities.
As the joint committee hearing approaches, stakeholders will be closely monitoring the proceedings to see how the Provincial Board addresses the legal and financial aspects of this compromise. The outcome could set a precedent for future tax settlements in Cebu and beyond, reinforcing the importance of rigorous oversight in governmental financial matters.
