Mactan airport head to Lapu’s tax demand: Wait for SC ruling

THE Mactan Cebu International Airport Authority (MCIAA) can only pay taxes on their properties not under litigation.

Engineer Nigel Paul Villarete, MCIA general manager, gave this reaction to the demand letter sent by the Lapu-Lapu city government to the MCIAA asking full payment of taxes due.

“But I have to follow auditing procedures because if we pay something which we are not supposed to pay then we will all be jailed,” Villarete said.

The MCIAA earlier gave an initial payment of P88 million to the P1.8 billion to the Lapu-Lapu government for unpaid taxes covering 10 years.

Villarete said that he was hoping that the Supreme Court could already act on this (airport properties under litigation) so they can have basis of payment.

“Paying now the parcels of lot under litigation is cutting it short of sub judice,” he said.

He also said that the taxiways and runways which is the airfield or aviation lot are not taxable as it is a proprietorial ownership of the national government.

He said it’s just like the national roads which no local government unit can impose taxes.

The MCIAA has sought a review of the case from the Supreme Court. He said the most prudent thing to do is to wait for the Supreme Court decision.

He assured the Lapu-Lapu city government that they were still assessing lots leased to private sectors and commercial taxable areas.

“We will continue to pay from this day forward, we are happy for this new development with Lapu-Lapu City. We are glad being a corporate citizen of the city, our desire is to be of help to city and we are happy that we are friends now. Let it be a sign to move us forward.” Villarete said.

With regards to the P14.4 billion the MCIAA received from GMR-Megawide project, which was made basis for a City Council resolution attached to the demand letter for the MCIAA to pay the Lapu-Lapu government, Villarete said they cannot withdraw that fund because it is intended for a specific purpose and that will be used by the Department of Transportation and Communication in the airport terminal expansion project.