MANILA, Nov. 16 (PNA) – President Benigno S. Aquino III has signed Executive Order No. 173 granting reduction and condonation of real property taxes and interests as well as penalties assessed on the power generation facilities of independent power producers (IPPs).
Presidential Communications Operations Office (PCOO) Secretary Herminio B. Coloma Jr. said on Sunday the EO aims to relieve the IPPs from payment of fines, penalties and interests such as deficiency and real property tax liabilities.
”Considering that local government units are collecting real property taxes from IPPs, which will eventually result to massive liabilities of the National Power Corporation (NAPOCOR) that could lead to an increase or spike in the cost of electricity, President Aquino signed on 31 October 2014 Executive Order No. 173,” Coloma announced over Radyo ng Bayan.
Pursuant to the executive order, Coloma said 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 build-operate-transfer contract will be 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 said property, machinery, and equipment depreciated at the rate of two percent per annum less any amounts already paid by the IPPs.”
”The same executive order also stated that all fines, penalties, and interests on such deficiency, real property tax liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof,” Coloma said. (PNA)