Pres. Duterte Reduces Real Property Taxes For Independent Power Producers

Pres. Duterte Reduces Real Property Taxes For Independent Power Producers

Spotlight

In COVID-Free Town, Learning Goes On Under The Trees, In Open Spaces

The town of Paglat, which hasn’t had a single case of COVID-19 since the pandemic, is among the few places in the Philippines where learners cope with school work through in-person tutorials.

Add To Cart: Synergeia Launches Online Store In Aid Of Parents

As part of their efforts to help boost income of parents amid the COVID-19 pandemic, Synergeia Foundation has launched an online store where parents can sell anything.

Filipino PR Executive Wins People Of The Year 2020 In Beijing

PAGEONE Group CEO Ron F. Jabal was recognized as People of the Year 2020 in the Golden Flag Awards — one of most prominent PR awards in China!

Children Still Survive In Makeshift Homes And Miss Out On Learning After Typhoon Rolly

"Our house was destroyed because we are poor," said nine-year-old Maria who was among the thousands of children left homeless when Super Typhoon Rolly made landfall in Albay.

President Rodrigo R. Duterte has ordered the reduction of real property taxes earlier slapped on some independent power producers (IPPs) to deter possible increases in power rates and rotating power outages.

Executive Order (EO) 117, inked by Duterte on July 24 and made public on Wednesday, reduces and condones real property taxes and penalties assessed on power generation facilities of IPPs under Build-Operate-Transfer (BOT) contracts with government-owned and -controlled corporations (GOCCs).

Under Republic Act (RA) 7160 or the Local Government Code of 1991, the President “may, when public interest requires, condone or reduce the real property tax and interest for any year in any province, city, or municipality within the Metropolitan Manila area.”

EO 117 notes that the reduction and condonation cover all liabilities for real property tax, including any special levies accruing to the Special Education Fund for 2019, on property, machinery, and equipment actually and directly used by IPPs for the production of electricity under a BOT scheme and similar contracts.

The order also covers similar contracts under Power Purchase Agreements, Energy Conversion Agreements, or other contractual agreements with GOCCs that were assessed by local government units (LGUs) and other entities authorized to impose real property tax for all years up to 2019.

“(All liabilities for real property tax) are hereby reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value of the said property, machinery, and equipment depreciated at the rate of 2 percent per annum, less any amounts already paid by the IPPs,” EO 117 said.

All interests and penalties on such deficiency real property tax liabilities are condoned and concerned IPPs are relieved from payment, according to the order.

EO 117 also notes that all real property tax payments made by the IPPs over and above the reduced amount shall be applied to their real property tax liabilities for the succeeding years.

Duterte issued EO 117, as he raised concern that a substantial portion of real property taxes being charged against IPPs may prompt massive direct liabilities on the part of GOCCs.

The EO aims to consolidate the government’s fiscal efforts, stabilize energy prices, and avoid further cross-defaults and significant economic losses across all sectors.

“As the operations of affected IPPs contribute largely to tax revenues for the national government and LGUs, and provide grid capacity of around 3,100 megawatts, their closure and non-operation will entail substantial losses to the government and force resort to more costly electric power source alternatives or the implementation of rotating power outages,” it said.

All concerned government entities, including relevant GOCCs and LGUs, are directed to strictly comply with EO 117.

“All rules and regulations, or parts thereof, which are inconsistent with the provisions of this Order are hereby revoked, amended or modified accordingly,” the EO read. “If any provision of this Order is declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting.”

EO 117 takes effect immediately upon publication in a newspaper of general circulation. (PNA)

Slapshock Frontman Jamir Garcia Passes Away At 42

Rest in peace, Jamir. Your contributions to the music industry in the Philippines will never be forgotten.

Over 1.5K Drivers Join LTFRB’s Service Contracting Program

A total of 1,520 PUVJ drivers have joined the LTFRB's Service Contracting Program during its first day of registration and orientation.

Davao Parishes Allowed To Hold More Pre-Dawn Masses

Good news! The Archdiocese of Davao has allowed parishes to schedule more Simbang Gabi (pre-dawn) Masses for the holiday season.

BDO Waives Overseas Remittance Fee For Donations To Typhoon Victims

To help its fellow kababayans hit by the successive typhoons, BDO is waiving the remittance fee on donations from overseas Filipinos coursed through different foundations.

Concerns And Recommendations On Education Amid The Pandemic

READ: First-hand experience of a student amid the pandemic.

Soccsksargen Updates Contingency Plan For Quake, Tsunami

The local governments and other stakeholders in Region 12 are now more prepared in responding to possible major earthquakes and tsunamis.

OPM Singer April Boy Regino Dies

OPM icon April Boy may be gone but his music and his songs will be forever in our hearts.

25 Villagers In Surigao Sur Complete TESDA Training

Congratulations to the new graduates!

Gov’t Allots P100-M For Crisis-Hit Workers In E. Visayas

The DOLE - Eastern Visayas has started the payout of the PHP100 million one-time cash assistance to private workers displaced by the pandemic.

PasigPass Is Not Required Upon Entering Pasig: Sotto

Pasig Mayor Vico Sotto clarified that the city’s traffic enforcers will not be requiring individuals to present PasigPass upon entering the city.