Ray Reyes

Solon slams NGCP for ‘unpaid’ franchise tax

August 20, 2023 Ryan Ponce Pacpaco 395 views

A LAWMAKER on Sundsy slammed the National Grid Corporation of the Philippines (NGCP) for allegedly not paying its franchise tax for 12 years and instead passing on to consumers the three percent tax it owes to the government.

“This is a deplorable practice, and one that warrants a thorough review of the franchise of the NGCP,”said AnaKalusugan Rep. Ray T. Reyes.

Reyes noted that based on the financial statement sent by NGCP to the SEC, NGCP is more than capable of paying its franchise tax yet still chose to pass on the responsibility to consumers.

“Given a net income of more than P20 billion annually since 2011, kayang-kayang bayaran ng NGCP ang kanilang franchise tax pero mas pinili pa rin nila na ipasa ito sa mga consumers,” he said.

He also cited NGCP’s financial data which shows how NGCP is allegedly more focused on paying out dividends to its shareholders.

“Noong taong 2011, 2013, at 2014 mas mataas pa ang dividend payout ng NGCP kesa sa kanilang net income,” said the solon.