The Bureau of Internal Revenue (BIR) confirmed that NGCP religiously pays the 3-percent franchise tax mandated by law.
This was confirmed by BIR Commisioner Atty. Romeo Lumagui Jr. during the hearing of the House Ways and Means Committee.
Lumagui also assured the public the strict implementation of Energy Regulatory Commission Resolution No. 10 following the release of BIR Revenue Memorandum Circular 24-2024, which prohibits NGCP from passing the franchise tax to consumers.
“NGCP has been religously paying its franchise tax to BIR,” Lumagui said.
From 2018, ERC Chairperson Monalisa Dimalanta reported that NGCP paid between P1.3 billion to P1.5 billion franchise tax every year.
Since 2016 to 2022, NGCP paid a total of P21 billion in franchise tax, Dimalanta added.
Meanwhile, a lawmaker has called on Congress to look into the legal accountabilities of former ERC Commissioners who approved NGCP’s petition to pass on the 3-percent franchise tax to consumers.
“What are the possible legal accountability on the part of the body who approved the resolution authorizing NGCP to pass on the 3% franchise tax,” Dagooc emphasized.
Dagooc maintainted that NGCP cannot be blamed for this move, saying it acted based on the ERC resolution issued in 2011.
“Hindi naman nila ipasa iyon kung wala yung resolusyon na iyon, kung hindi sila pinahintulutan ng regulator,” he said.
Meanwhile, Committee chairperson Albay Rep. Joey Salceda admitted that he was part of former President Gloria Arroyo’s
economic team that crafted ways to make TransCo salable.
To make it attractive to investors, Salceda said they set the franchise tax gross income to 3 percent.
