Rep. Ray T. Reyes of AnaKalusugan on Monday 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 3 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,” Reyes, a member of the House Committee on Energy, said.
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.
“This is a cause for concern,” Reyes said, noting that the corporation had a net income of more than P20 billion annually since 2011.
“I am appalled and we should be deeply concerned as this is but part of a long list of questionable practices by the NGCP,” he added.
The lawmaker bemoaned the fact that the NGCP looks perfectly content in merely paying penalties and lacks the urgency to fulfill their franchise obligations.
“It’s saddening because even if they get flooded with penalties, the NGCP continues to earn profits, and they seem to be content on just paying the penalties instead of competing their promised projects. This abusive action must be met with accountability,” Reyes stated.
Reyes also cited NGCP’s financial data which shows how NGCP is more focused on paying out dividends to its shareholders than completing projects for consumers.
“In the years 2011, 2013, and 2014, the NGCP’s dividend payout was higher than its net income. If the NGCP is being run this way, then that explains why they’re encountering so many delays and can’t seem to complete a project,” Reyes added as he cited the need for Congress to conduct a review of the NGCP franchise.
As of press time, the NGCP has yet to respond to Reyes’ statement on the corporation.