Pampanga asks firm to pay taxes for hauling sand
By Tonette Orejas - Inquirer
CITY OF SAN FERNANDO—The Pampanga government has given a Japanese company until Friday to show proof why it should not be made to pay taxes for the sand it is using as filling material for portions of the P21-billion Subic-Clark-Tarlac Expressway (SCTEX) in the province.
The Kajima Corp. would be compelled to show a copy of the contract stipulating it was entitled to tax exemptions, provincial administrator Fidel Arcenas told legislators investigating alleged anomalies in quarry tax collections.
At the resumption of the hearings on Tuesday, Arcenas said Kajima also faced a cease and desist order if it fails to furnish the provincial government a copy of the contract.
The firm was first issued a “notice of failure to pay extraction fees” on May 25, he said.
The Pampanga government is questioning the use of sand obtained during “cut and fill” processes in Floridablanca and Porac towns. The material is gathered when earth-moving equipment cut through hills or fields along the project’s right of way. The supply is then piled to form the new road.
“[Kajima] said it merely transferred the materials. We said they actually [used] the materials for the road and so they must pay,” Arcenas told the House of Representatives’ committee on good government chaired by Iloilo Rep. Arthur Defensor.
Arcenas said he and a Kajima representative, during a meeting last week, have not yet determined the amount of taxes due the provincial government.
The company worked on a 31-km segment of the expressway’s first phase. The remaining 19 km in this phase on the Bataan side is being done by Obayashi Corp. The road, funded on a loan from the Japanese government, covers a total length of 97 km.
Like other principal contractors, Kajima buys its filling stock from local haulers who pay for the sand taxes.
Overall, the project was estimated to spend a total of P2.3 billion on filling materials alone, a copy of a SCTEX’s bill of quantities furnished by Vice Gov. Joseller Guiao showed.
Pampanga charges a tax of P300 per truckload of high-grade sand and P100 for low grade sand, Arcenas said.
The project’s need for at least 5.1 million cubic meters of sand (equivalent to 283,554 truckloads) could earn for Pampanga at least P85 million, Guiao said.
CITY OF SAN FERNANDO—The Pampanga government has given a Japanese company until Friday to show proof why it should not be made to pay taxes for the sand it is using as filling material for portions of the P21-billion Subic-Clark-Tarlac Expressway (SCTEX) in the province.
The Kajima Corp. would be compelled to show a copy of the contract stipulating it was entitled to tax exemptions, provincial administrator Fidel Arcenas told legislators investigating alleged anomalies in quarry tax collections.
At the resumption of the hearings on Tuesday, Arcenas said Kajima also faced a cease and desist order if it fails to furnish the provincial government a copy of the contract.
The firm was first issued a “notice of failure to pay extraction fees” on May 25, he said.
The Pampanga government is questioning the use of sand obtained during “cut and fill” processes in Floridablanca and Porac towns. The material is gathered when earth-moving equipment cut through hills or fields along the project’s right of way. The supply is then piled to form the new road.
“[Kajima] said it merely transferred the materials. We said they actually [used] the materials for the road and so they must pay,” Arcenas told the House of Representatives’ committee on good government chaired by Iloilo Rep. Arthur Defensor.
Arcenas said he and a Kajima representative, during a meeting last week, have not yet determined the amount of taxes due the provincial government.
The company worked on a 31-km segment of the expressway’s first phase. The remaining 19 km in this phase on the Bataan side is being done by Obayashi Corp. The road, funded on a loan from the Japanese government, covers a total length of 97 km.
Like other principal contractors, Kajima buys its filling stock from local haulers who pay for the sand taxes.
Overall, the project was estimated to spend a total of P2.3 billion on filling materials alone, a copy of a SCTEX’s bill of quantities furnished by Vice Gov. Joseller Guiao showed.
Pampanga charges a tax of P300 per truckload of high-grade sand and P100 for low grade sand, Arcenas said.
The project’s need for at least 5.1 million cubic meters of sand (equivalent to 283,554 truckloads) could earn for Pampanga at least P85 million, Guiao said.
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