By Rio N. Araja

Quezon City wants to tax Smart Communications Inc. and Globe Telecom Inc. on their multibillion-peso sales of load allowance plans and prepaid loads to customers.

Dr. Victor Endriga, city treasurer, said the two giant mobile phone companies have failed to pay franchise taxes to the local government.

He said the obligations arose from their selling of the popular mobile phone loading schemes to Quezon City resident-subscribers over the past years.

?They only paid business taxes, and not the franchise taxes. They only paid less than P1 million in business tax per annum each. It is high time to compel them to submit their financial statements, and open their books of account,? Endriga told Standard Today.

According to him, a lawyer of Smart has come forward for an assessment and payment of business taxes, and the renewal of its business permit.

?He arrived at my office to settle Smart?s taxes for 2008. I informed him that the firm owed the city hundreds of millions of pesos in franchise taxes,? Endriga noted.

?I requested a meeting with Smart officials at the soonest possible time.?

He said Globe would be summoned, too.

?Both firms are earning billions of pesos per annum from gross sales of cell phone loads. They could break the record of other giant corporations once our planned tax collection is pushed through,? Endriga said, adding that the city has about 2.3 million residents.

?Can you imagine how many texters we have in the city??

Endriga says the firms have more reason to settle their tax dues since they are making good in their business.

?Fifty-seven percent of 1 percent of the gross sales represents hundreds of millions of pesos,? he said.

?In fairness, Smart and Globe are not hard to deal with. They promise to pay us once we are done with our final computations of tax payments.?