Geothermal tax share
to be used for Leyte’s school building program
TACLOBAN CITY – With
the Philippine National Oil Company reportedly set to pay its royalty
tax share amounting to more or less P450 million to local government
units in Leyte soon, Gov. Carlos Jericho Petilla said, the province is
going to devise a school building program where its provincial share
Gov. Petilla said for
several years now, they have been urging the geothermal company to pay
their royalty taxes to the province, the host municipality and
barangay and has even taken matters to the court to determine how much
is really owed to the respective local government units.
Under Section 294 of
Republic Act 7160 or the Local Government Code of 1991, provides that
45 percent of the royalties from the exploitation of natural resources
should go to towns, 35 percent to barangays and 35 percent to the
Should the payment of
these royalty shares go through in the latter part of the year, the
governor disclosed the province would utilize the tax share in a
school building program that would address the classrooms problem of
many public elementary and high schools in the province.
“The plan is to devise
a school building program where those that would be prioritized are
schools lacking in classrooms then those that are badly needing of
repairs,” Gov. Petilla said.
It can be recalled
that in the last visit of President Gloria Macapagal-Arroyo to the
province during the latter’s hosting of the Palarong Pambansa 2009,
the President announced that the royalty shares of the local
government units where the sources of the geothermal power generation
have been determined and will soon be released.
The Department of
Budget and Management has computed royalty tax shares which will be
released to the host local government units after President Arroyo
earlier ordered the DBM together with the Department of Energy (DoE),
Department of Finance (DoF) and the Department of Interior and Local
Government to work on the computation of the royalty shares and have
these released at the soonest possible time to the LGUs that play host
to the country’s geothermal power plants.
The province of Leyte
will reportedly receive P4,101,338 for 2007 and P17,616,006.80 for the
The municipality of
Kananga will receive the royalty tax share of P6,280,921 for the year
2007 and P26,173,490.40 for 2008 while Ormoc City will receive
P2,947,090 and P13,462,524 for 2007 and 2008 respectively.
For the host
barangays, a royalty share of P4,729,204 and P19,817,809 for 2007 and
2008 will be given to Barangay Lim-ao and Barangay Rizal and another
P155,956 and P539,349 for Barangay Tongonan in Kananga town.