Communists reject China-based firm's request for tax exemption

Manila: The Communist Party of the Philippines (CPP) said it has rejected the request of a China-based firm, which has a branch in the Philippines, to be exempted from paying the revolutionary tax imposed by CPP's military arm, the New People's Army (NPA), a rebel spokesman said.

Gregorio Rosal, alias Ka Roger, spokesman of the CPP-NPA, revealed that officials of Beijing-based China Road and Bridge Corp (China Road) had met with the leftist leaders last month to request to be exempted from paying revolutionary taxes.

Rosal said he turned down the request, adding this was the reason why the NPA burned the firm's heavy equipment twice, on January 20, 2004, in Santa Catalina town in Negros Oriental in central Philippines, and on April 25, 2005, in San Andres town in Catanduanes in southern Luzon.

"A revolutionary tax will give protection to the company," said the NPA, but government officials said that paying the NPA's imposed tax would place the company under the control of the CPP-NPA.

"Businesses that cause harm to a community are not allowed to operate in NPA areas," said Rosal, adding that companies such as mobile phone service providers and bus firms that refuse to pay revolutionary tax have either been burned or bombed by the NPA.

Meanwhile, Justice Secretary Raul Gonzalez said that private firms which pay revolutionary taxes to the NPA would be prosecuted as accessories or accomplices of the insurgents.

Accomplices

"They must inform the authorities every time the NPA harass them into paying revolutionary taxes," Gonzalez said.

"If the firms do not complain or if they tolerate the practice, they can be accused of indirectly supporting the NPA," said Gonzales.

At the same time, Army Maj Jose Broso, spokesperson of the Southern Luzon Command, appealed to businessmen not to give in to the NPA's imposed taxation.

"Businesses that cause harm to a community are not allowed to operate in New People's Army areas."

Gregorio Rosal

Rebel spokesman