Online newsletter for the citizens of Sagunto, Sison, Pangasinan, Philippines
Congressman Cojuangco left the following as a comment on one of our posts in response to the question posted by Mr. Jun Aquino. I thought it would be fitting to publish it as a separate post so that it is easier for everyone to find.
To my townmates of Sison:
This is in response to the question many of you have asked:
1. Is Sison entitled to collect tax from NCC? If yes, what is the rightful tax due to Sison? What have they done to collect this? How much have been collected?The simple answer is YES. Sison is entitled to collect tax from NCC and NCC has duly paid its taxes to Sison, on time and in full.
To start, see the detailed explanation and resources cited below:
The following link:
http://www.chanrobles.com/localgov2.htm and in particular; Sec. 143 (a) and (c)(8) CementThis Section and subsections of the “LOCAL GOVERNMENT CODE” or RA 7160 provide the legal basis for the Municipal Government’s taxation of NCC.
Note; {the IRR (Implementing Rules and Regulations) of the “LOCAL GOVERNMENT CODE” or RA 7160 have these same provisions under; Art. 243 (a) and (c) (8) Cement}
Subsec. a) (in the last line of the enumerated tax rates for gross sales ABOVE 6.5M Pesos per year) provides for a maximum rate of 37.5% of 1% or;
0.375 x 0.01 x gross salesSubsec. c) Provides for a limit of 1/2 or of the amount granted under Sec. a) or; 0.5 x (the amount granted in subsec. a); for item “(8) Cement”, because it is an “essential commodity”.
The TOTAL EFFECT of Subsec. a) and Subsec. c) is therefore:
1/2 (or 0.5) x 37.5% (or 0.375) of 1% (0.01)
Or more simply;
0.5 x 0.375 x 0.01 x gross salesExample:
If a cement company were to have a gross sales of 2 Billion Pesos (2,000,000,000) then its total local tax for manufacturing should be
2,000,000,000 x (0.5 x 0.375 x 0.01) = 3,750,000NCC Facts:
If you compute backwards for the 4,575,444.71 in local taxes that NCC paid to Sison in 2009, then;
4,575,444.71 / (0.5 x 0.375 x 0.01) = 2,440,237,178.66 or,
(approx; 2.44 Billion) pesos in gross salesIf you check the reported gross sales of NCC, you will find that it is at par with similarly sized cement plants all over the Philippines. This has been the subject of a Sangguniang inquiry in the past, and no inconsistency has ever been found.
Further, the output of any cement plant, as it is with NCC, varies and fluctuates with the quality of coal that it can purchase, its financial condition, economic and market conditions, the season; rainy or dry (sales go down in rainy season), the supply of electricity and, the status of the plant machinery; meaning whether it is undergoing maintenance or not.
With coal especially for example; Semirara coal has a heating value of 4,800 to 5,500 Kcal per kilo whereas imported Indonesian coal has a heating value of 6,200 to 6,500 per kilo. Therefore; with Semirara coal, NCC can only produce a max of between 69,800 to 80,000 bags per day, but with imported Indonesian coal, NCC can approach a capacity of between 87,750 to 92,000 bags per day, a difference of from between 15% to 35%. It is only recently that NCC has been able to source imported coal, and the certainty of this supply is very price dependent.
Therefore;
Although NCC is rated at approximately 90,000 bags per day @ 300 operating days per year, this level is achieved only under the most ideal conditions.This is seldom the case as everyone who has ever worked at NCC would know, that there are many problems and difficulties involved in running and operating a cement plant.
Nevertheless, in wanting to maximize its profits, NCC always strives to achieve the highest levels of production and in so doing, will always strive to maximize its “gross sales”, and therefore by definition, so will its tax payments to Sison.
In other words, sa ilalim nitong nakatakdang batas, gusto ng NCC na malaki ang local manufacturing tax na binabayaran dahil; ang ibig sabihin nito, malakas din ang benta ng semento.
I therefore urge the readers and the public, to discern the truth and the reality and, to reject the malicious insinuations hurled at NCC for the purpose of misinformation and only for pure political opportunism.
SO THAT ALL MAY KNOW
When Mayor Kimi first took office, we called for a meeting with the whole Sangguniang Bayan. In that meeting, I declared that I wanted the local tax rate for NCC to be raised to the full extent allowed by the law, if it had not already been done so. I then requested the SB to effect the same.I said I wanted it so, because I did not want the NCC tax issue to be used as a reason to question Mayor Kimi’s motives.
The tax has been at the highest possible level allowed by law since Mayor Kimi assumed office, and NCC has been paying it religiously.
NCC has no arrears or “back taxes” as maliciously claimed.
All tax obligations of NCC to Sison are always paid, ON TIME. And, NCC has all the receipts to prove it.
NCC pays other taxes as well; a local monthly regulatory fee of 15,000 per month, and annual real property taxes of approximately 4.6 Million, exactly 4,686,799.20 pesos paid in 2009.
The total in local taxes paid to Sison by NCC in 2009 was therefore;
4,686,779.20 real property tax
4,575,444.71 local business tax
180,000.00 in municipal regulatory fees
+ lesser amounts for other fees and municipal charges
For a total of approximately;
9,442,243.91 Pesos (9.44 Million)It also pays a mining tax (SBMP fund which is 1% of direct mining and milling cost of 2009) in the amount of 1,183,529.97 (2009 for 2010 use) which benefits the Bgys of;
Labayog 27%, Inmalog 22%, Sugcong (Pozzo)18%, Calunetan 10%, Sagitlang 18% and Paldit with 5% of this fund going to the other Bgys 5%.And so, does NCC benefit from the taxes it pays? Not really. Why? Because its over 12 km of roads are private (road from the National Highway in Barangay Paldit to NCC and interior roads), and government funds cannot be used to repair or maintain private roads. It also does not avail of any significant municipal services. In short, this payment really and directly benefits, only the people of Sison.
This makes NCC a good corporate citizen and the largest taxpayer in the town. As such, it is; “the goose that lays the golden egg” for all Sisonians. It is the “engine” of our economic well being and fiscal independence. NCC is; Sison’s model corporate citizen.
I can find no reason, why NCC should be made THE political “whipping boy”.
Every election NCC becomes, by malicious innuendo, the continuous hostage target of political opportunists .
It is a pity that these opportunists have never outgrown the negative politics of divisiveness, intrigue, malicious innuendo, character assassination, and outright misinformation and lying.
Bankrupt and devoid of positive ideas and a vision of progress for the town, it seems that all that they have to sell, is hatred.
I hope that our citizens will be better informed by this response, so that they may discern the truth, and also the good that NCC accomplishes for Sison, every single year.
There were other political issues raised in the posts.
In the interest of clarity, I will address them in separate posts.
Mark O. Cojuangco
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Dear Congressman Cojuangco,
Though I am unfamiliar with Philippine politics and taxation I have to say how admirable of you to take the time to answer some of your constituents’ questions posted here. Most politicians wouldn’t even take the time to do so.
I hope that the community will take advantage in using this forum to continue the healthy and respectful dialogue that Mayor Kimi and you have started on this issue.
Thank you for taking the time to respond.
Dear Congressman,
Thank you for taking time to answer our questions despite your busy schedules. This shows your concern to your constituents. Your answer was surely enlightening as most people of Sison are not aware on the details of taxation.
Not to question the accuracy of the numbers, it is just surprising that for a business grossing 2B PHP in sales, the taxes due are not even 1%. This combines both sales, mining and real estate taxes. Of course there maybe other taxes paid to the national governement but this just shows that the town of Sison can not solely depend on a single big business.
This further emphasize the need for a clean, honest and capable local government! Sison have a very limited fund and our local officials must utilize these taxes to create jobs or business opportunities – generating more income for Sison.
This also brings up a question of what the previous administrations have done to all these taxes throughout the years they served.
Again thank you very much Sir, for making an effort to enlighten us. We look forward to your inputs on Question #3.
Dear Fellow Sisonians,
Our Congressman has answered Question # 1. Pls study and share your comments. I’m sure he would welcome clarifications or follow up questions that we may have. This would be the best time.
Thank you Miss Jeanette for giving us this chance to access our government officials.
Kind regards,
Jun Aquino
Umay kayon, Aggagayyem ken Adkakailian. Ta addad’toyen ‘tay ur-urayen tayon. Nga agdamag nga diretcho ken ni Apo Congressman Cojuangco. Kadagiti am-amin nga napampanunut tayo. Maipanggep iti naduma-duma nga aramid da ken dida inar-aramid.
Pukkawan kayon tapno agsurat kayon ita. Saan yon nga palabasen daytoy nga chansa: Concerned Sisonian, mannalon, devilzadvocate, tagabarrio, tagasison, taga centro, taga poblacion central, manong, etlog, maria clara, kabaw nga lakay.
Agpasensya kayo laengen kaniak ta no ammok la koma ti damagek, siak to met la koman iti nagsurat itan. (Visit da SISONIANS group on FaceBook for more.)
To Mr. Aquino and Sisters,
Can you not get enough, now that our good congressman answers personally you and your sisters question regarding this issue??
Maybe its more of a sense to just encourage your Honorable father to post his and his running mate mayor for their realistic flat form of government (if there’s any), please??????????Thanks.
Regards,
Karen
Thank you all for getting more civil and mature in looking at things concerning our town. Maybe, we younger generations are the real hope for unity and cooperation absent from our town for decades. The sons and daughters can better speak and understand??? Congressman Cojuangco together with his wife, our beloved Mayor has also been changing the way we define politicians and leaders. They are now more approachable and fair, and their temperament controlled, seeing each and everyone of us a special member of the society, which is very important. This is a good start. Imagine …I would also keep doubting that some other hidden figures remain hidden if they would not speak up and answer our plea for clarity. “Di ba sa pagsasama ng maluwat, trust and openness ang dapat?” Dear Congressman, you’ve seen how getting down to the level of your people means gradually getting their acceptance and friendship. Please supply us more with your knowledge and ideas, as well as certain information that would finally make us various factions into ONE. This way, elections and selections of leaders would become a fairer and more pleasant endeavor.
Our Beloved Mayor Kimi has also done a lot, more than any previous administration…according to the common people we see in the neighborhood. Unfortunately, things have just started to roll, and she’s leaving what she has started unfinished. Agricultural efforts were great, but maintenance is greatly needed. Employment remains low, but Sison primarily an agricultural area, would eventually be encouraged to go back to the farms once the market is working. Meantime, while campaigning, let us not forget that life goes on, regardless of winning or losing in the elections.
A true leader has innate capabilities, and positions in the government should not be the lone driving force in accomplishing what you dream for the people. One striking “unit” our Mayor may have overlooked was the people’s expectation that she touches on issues pertaining to NCC environmental impacts. Mayor Kimi, to me deserves to get a 90% grade in general, but the 10% remains unsolved…(thus her grade of INC
). Well, who can accomplish such mammoth goals within 3 years? Could Atty. Mina continue what mayor Kimi has initiated and complete the other sectors that remain unsolved? I have a feeling our Congressman will be discussing about this environmental issue extensively in the very near future. In fairness, I have noticed that some patches of green have been lining certain parts of the cement mountain via Google Earth. When cousin Ophelia first published the aerial view of NCC by Google map, it was indeed a shocking picture. I was surprised at the sudden change browsing facebook of the Sisonians, as I viewed their capture of NCC by bors’ eyeview. Well…some improvements, but let us wait for our congressman to further enlighten us with the current state of the surroundings there. Would there be any chance activities there affect the loss of water supply in the vicinity? Was NCC a great donor when it comes to infrastracture, buildings, bridges and roads, in the whole town, and especially the adjoining barangays?
I love Saguntostar. Thanks Jeanette for opening this issue. You are a very bright admin here, hehehe. I salute you for standing up for us! Once this matter is tackled winning approval of our people, it means our mountains would finally breathe again, with the citizens showing their cooperation in upllifting our environment and preserving what used to be. Mabuhay ang Sison!
Yun naman pong ibang kandidato. Paki post naman po ng cute picture nyo. Ayan nakalalamang na si Congressman. Yung pinaka gwapo pa at bata ang ipinost nya na profile picture dito. Sino po ba si Mr. Aquino?
Gumagalang sa inyong lahat…
EMZ Benosa-Castillo-Homma
Ms. Karen, please focus on the issue not on the commentarist. And kindly check that the spelling of your “flat form” should be “platform”. Don’t be too defensive,every Sisonians has his right to question, what if 400 Sisonians swarm this site, can you always defend our honorable congressman?
Jun, I know what you mean about the less than 1% tax being out of proportion to the amount of income generated by NCC. HOWEVER, if you look at the local government code cited by the Congressman, NCC is only following the rules and rates set by the government.
You’re right, this “just shows that the town of Sison can not solely depend on a single big business” and it would be unfair for people to expect NCC to subsidize the whole town just because they are making profit. The most we could expect is that they pay their due taxes and other fees required for doing business in Sison.
As for how the previous administrations managed Sison’s funds, wouldn’t it be wonderful if someone took it upon themselves to research how Sison’s finances compare from year to year and administration to administration? I, for one would love to see such a report. Any takers?
I too am looking forward to the Congressman’s reply to your third question.
Thank you to Congressman Cojuangco for indulging us by answering our questions.
KAREN, I have already requested a statement from Mr. Victor Aquino’s camp regarding their platform. I hope they could accommodate us since all candidates must be terribly busy during election time. I hear that Mr. Aquino is an honorable man (no, not from his children or camp) and I am looking forward to hearing about what he has to say.
EMZ, before you get me in trouble hindi naman si Congressman nagsubmit ng picture niya. haha! ninakaw ay hiniram ko lang pala from the Sison Official Website.
He left the above reply as a comment on one of the posts on Sison’s candidates. See link in my intro above.
Bravo Hon. Congressman Cojuangco.
Oo nga po, sino po ba si Mr. Aquino? For Mayor din po ba? Sana mag post din mga candidates ang kani-kanialng reaction dito and most importantly their “flat-form” and personal background and achievements. regards.
Pa delete na lng po nung una. it should be,
Thanks a lot Ms. Jeanette.
More Power!
Nette, I know…I was just joking…nice loot. Keep snatching…
How do we contact other candidates like Mr. Farinas, current VM Marinas, and others? Even the kagawads are welcome to post their platforms too. Could they give us a bit of their biography? What made them run for office…when they started thinking they could be of help to the town and usher it to prosperity….what organizations they have joined since teenage life to adulthood, to current position? Any achievements academically and socio-civically?
I guess, their past say a lot of what they firmly believe in and will fight for. Goodluck to all candidates.
emz
Pati ba naman spelling eh pinag-iinitan na dito..nyehehe..
Cool lang Ms. Karen and Mannalon..
Hello Ms jeanette, believe po ako sa effort nyo. go go go pa po sa mga plataporma ng ibang candidates. Nagconfirm na po ba sila?
Critical po mga information na to para sa magpili ng susunod na leader..
Thanks.
Finally I was able to read a straightforward answer for that particular issue “NCC TAX”. For so long I’ve been hearing that issue and I can not get any sensible answer. Thanks Sir for enlightening us. If only the government is just transparent with all the public records then those things could have not been an issue at all specially during election period. Well i’m not just referring to our town but the whole country. Haayyy how I wish I can still see a real good governance at work in my lifetime. Sana Noy ikaw na nga …. hahaha
Thanks Jeanette,
I think you captured the points in my comment very well. It is not to say that that tax paid is small or big but to highlight the facts:
1. Sison should not be depend on NCC.
2. We should have a capable, clean and honest government that can create jobs and make Sison conducive for business. Income generation!
In addition, the people of Sison should also be doing our part in asking and demanding our rights. Let’s all help one another in getting information on past leaderships and what they have done with all these taxes since time forgotten. This would serve as a notice for future administration that people are watching and knowledgeable enough.
I really hope someone can help take the next step and find out more! Anyone willing?
Lastly, if I may introduce myself. I’m the son of Victor Aquino Sr running for Vice Mayor. I studied in NLA and finished my degree in MIT. I raise these questions because it always comes out during election and I would like to help my father get some truth about this.
Cheers,
Jun
Ms. Jeanette,
You are actually doing great in hosting this issue, now if you don’t mind and if there is any possibility, being an expert in computers, how about hosting a “mock election survey” just for fun. he he…who knows mapredict natin ang next president and mayor of Sison. Keep it up, you are making me prouder as a Sisonian!
Oh for the participants or respondents, off course our Sisonians fb members, who knows we could lure additional members and make the inactives participate. Just a suggestion.
Thank you!
EMZ, I have been thinking of a way to contact all the candidates too, but since I am waaay over here, I have appealed to their supporters to have them contact us and submit their platforms via email. I hope it works.
I think VM Marinas’ email is on the Sison website. Thanks for reminding me. I will send him an email. Hopefully, he checks his emails. lol!
salamat, Mr MODERATOR
Patulong po sa pag hunt down ng platapormas kung nandyan kayo sa Sison. When you see these candidates around, cornerin po ninyo sila at kunin ang kanilang plataporma. (haha! that sounds sinister)
JER, so sino ang choice mo for prez? hehe! Seriously, I think the issue of transparency is one thing that Mayor Kimi has adhered to since taking office. I think a lot of people though have gotten used to the closet mentality that they haven’t realized they can now exercise their right to question their government and seek documentation or proof that they need. Just my theory as to why people have not swarmed the office of the treasurer in Sison to find the answers to these old questions once and for all. Just my opinion.
Hey, JUN, since you are an NLA alum and we all know how some of Sison’s brightest come out of that school, why don’t we task some of the students to do this research that we have been talking about? Have them get the financial records and track the progress of spending over the years and over administrations. It would also be a good way to get the young people involved in the civic process. Again, just my brain storming in
MANNALON, you are really making me work! hehe! but I will look it to it. It does sound like fun to take a survey to predict our next officials.
“HAR HAR HAR HAR!”
“Ni, kasla met nagragsak la unay tattan dituy Sagunto Stars, nag-adun iti tattao, aguray man kadi ta ayabak man amin nga kakadduak idiay Sisonians Blog ta puros da met amin nga nakaturogen. Imbag laengen ta niriing nak ni uncle ko nga Leo Barrit…a…har har har!”
Ni apay, addadtuy gayam ni mannalon di na kami pay inayaban, ni Karen met iti nakita nan, daytuy nga talaga mannalon nakakita la iti balasang imbati nan diay balay nan…tsk …tsk…tsk…
Sapay kuma ta agsingsingpet dagitoy nga kakandidatos tapno saan nga umadu iti kliyentek nga mapan idiay impiyerno. HAR HAR HAR HAR!
Sige ngaruden ta mapan ko pay biruken ni Concerned Sisonian kenni “Lawin” original nga lawin apo, saan nga ni Lagmay isu!
Be good Sisonians or be my client!
What: House to House Survey
When: April 10 to 14
Where: All Sison Barangays
Conducted By: Concern Sison Citizen Grp.
Result:
Mayor1 : ~59%
Mayor2: ~30%
Mayor3: ~11%
VMayor1: ~44%
Vmayor2: ~31%
Vmayor3: ~25%
Hi Net I choose Noynoy Aquino for Prez ….. he might not be the most qualified in some aspects but “DI AKO MAGNANAKAW!!!” kunana met isu a nga isuna ti pinilik… Syempre no Aquino President ko a ket di Vic Aquino na rin ang Vice Mayor ko.…. Di ako nangangampanya ha just sharing my opinion hahaha
wen mayat nga kumbinasyon ni MAYOR PANGASINAN ken VICE MAYOR AQUINO..
daytoy tlaga rumwar..survey results!!! haha nag survey da diay lasong ken ngaab..
Jeneatte,
That’s is a great idea. Let us see if we can sell it to the NLA Administration. This can also apply to Sison Carmelian HS and Sison Central School. They can then arrange a symposium to present their findings and recommendation. This can involve the young generation and open them to the world of governance. Who knows the future leaders may come from these bunch. Anyone, willing to sell these to the two other schools? I’ll try to approach my previous teachers and see.
On the survey, thank you for sharing. Can the names be shared:
Mayor 1: ?
Mayor 2: ?
Mayor 3: ?
V Mayor 1: ?
V Mayor 2: ?
V Mayor 3: ?
Thank you!!!
Jun