GUIGUINTO, Bulacan, Philippines — Mayor Isagani Pascual of this town advised other local government units (LGUs) hosting toll plazas of the North Luzon Expressway (NLEx) to follow his example and oblige the tollways operator to pay back taxes.

“What are you doing? Don’t relax, do some digging and quarry the goldmine in your backyard,” Pascual said metaphorically as he advised other mayors to run after the Manila North Tollways Corporation (MNTC) for back taxes such as mayor’s permit, business tax, building permit, and a host of other fees.

Pascual’s call came after the Regional Trial Court (RTC) here ruled last week that the toll plazas of MNTC, which owns and operates the NLEx, are “branches and sales outlets” that are subject to payment of local business taxes.

In a consolidated decision penned by Judge Wilfredo T. Nieves of the Bulacan RTC Branch 84, the precedent-setting verdict ruled that MNTC has no tax exemption privilege under the Supplemental Toll Operation Agreement (STOA).

The court ordered the tollways operator to pay the assessments of the municipality of Guiguinto amounting to some P70-Million.

In a research conducted by the Bulacan Media Investigative Reporters (BMIR), the STOA is a 1988 agreement executed by and between MNTC – then owned by the Lopez Group and later bought by the Metro Pacific Group – and the Philippine National Construction Corp. (PNCC), whose legislative franchise to operate NLEx expired last May 1, 2007.