MANILA, Nov. 17 — Independent power produces are getting a hefty Christmas present courtesy of the Palace.
Malacañang said on Sunday that President Benigno Aquino III signed an Executive Order that grants the reduction and condonation of real property taxes, interest and penalties for independent power producers (IPP).
Palace spokesperson Secretary Herminio Coloma, Jr., said Executive Order 173 covers real property taxes and interest/penalties assessed on the power generation facilities of IPPs under build-operate-transfer contracts with government-owned and controlled corporations.
Pursuant to the executive order, real property taxes imposed by LGUs for all years up to 2014 on “property, machinery, and equipment actually and directly used by IPPs for the production of electricity under a build-operate-transfer contract will be reduced to an amount equivalent to the tax due with computed date on assessment level of 15 percent of the fair market value of said property, machinery, and equipment depreciated at the rate of two percent per annum less any amounts already paid by the IPPs.”
Coloma said this is to prevent any liabilities from the part of the National Power Corporation that could lead to an increase or spike in the cost of electricity.
President Aquino signed the EO last October 31, 2014.
“The same executive order also stated that “all fines, penalties, and interest on such deficiency, real property tax liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof,” Coloma said.