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Governor infuses rebate fund
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Posted on Jan 11 1999
Gov. Pedro P. Tenorio has said his administration is beginning to rebuild the special rebate trust account to make sure that people receive their rebates covering last year’s tax on time.
At the same time, the governor assured that the Department of Finance is setting aside money to pay out the Earned Income Credit due to taxpayers since 1998.
The financially-troubled government owes taxpayers some $6 million in EIC which have been held up due to lack of funds, and some officials once considered drawing up a payment plan to settle the cash obligation of the administration.
“We want to make sure that we try to reserve money so we can start paying the EIC,” Tenorio said in an interview.
At this early, the local chief executive said that money for tax rebates is being reserved to avoid another delay similar to last year’s release of rebates and refund checks.
Due to a shortfall in the special rebate trust account, repayment of rebates for last year’s tax was delayed. In the past, EIC, rebates and refund were released in the month of May in lumpsum. Checks were not released until August in 1998 due to cash shortage.
Finance officials previously said the three will be issued separately to enable them rebuild the special account, which had been found almost depleted after the new administration took over.
Money in the rebate trust account amounted only to $2 million when it should have been at $31 million as of end-1997.
The release was further delayed due to amendments in the tax laws late last year that expanded the tax rebate base.
