MANILA – President Rodrigo Duterte has ordered the reduction and condonation of real property taxes and penalties assessed on power generation facilities of independent power producers (IPPs) under Build-Operate-Transfer contracts with government-owned or controlled operations (GOCCs).
Executive Order (EO) no. 88 signed on Tuesday but released to the media only on Friday states that the reduction and condonation cover all liabilities for real property tax, including any special levies accruing to the Special Education Fund for calendar year 2018.
Dues are 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 property, machinery, and equipment depreciated at the rate of 2 percent per year and less any amount already paid by IPPs.
It also covers power purchase agreements, energy conversion agreements or other contractual agreements with GOCCs.
The order also states that all interests on such real property tax liabilities are condoned and that IPPs involved are no longer required to pay such.
Real property tax payments already made by the IPPs that exceeded the reduced amount under Duterteās latest order shall be applied to their property dues for the succeeding years.
The concerned government entities, including relevant GOCCs and LGUs, are ordered to comply with the EO.
āIf any provision of this Order is declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting,ā read the 2-page order, which will take effect upon publication in a newspaper of general circulation.
The new EO was issued in aid of the governmentās fiscal consolidation efforts and to avoid triggering economic losses in different sectors. (ABS-CBN News)
