Finally, MCIAA pays taxes to Lapu-Lapu government

Mactan-Cebu International Airport (Inquirer File Photo)

After more than 10 years of refusing to pay taxes to the city government of Lapu-Lapu, the Mactan-Cebu International Airport Authority (MCIAA) yesterday handed a check for P88 million to the City Treasurer’s Office as its first tranche.

Mayor Paz Radaza thanked the MCIAA board for making good its earlier promise of payment.
“This is just part of the long overdue real property taxes we demanded from them since 1993, which accumulated to almost P1.8 billion,” Radaza said.

Along with the payment made were documents representing the taxable commercial areas occupied by MCIAA. Radaza explained that the city is still assessing the taxable commercial areas which will be covered by another round of payment to the city.

Lapu-Lapu will use the money to finance city projects and a portion of it will be for the Special Education Fund (SEF) to construct more classrooms.

Radaza clarified that the payments do not go with any conditions and would not affect the case that is pending in the Supreme Court. The city earlier won the case at the Court of Appeals but the MCIAA appealed the case to the High Court.

The mayor has been calling on MCIAA to pay its overdue taxes to the city. She has mentioned this issue in various speeches and had made this a campaign promise to collect payment.

“Our desire to collect the taxes makes sure that the case won’t be prejudiced. Perhaps the MCIAA would ask to waive the penalties but it should be in accordance with the Commission on Audit policy or limits,” Radaza said.

The City Council earlier authorized the mayor to collect taxes from the MCIAA.