Gov’t condones realty taxes, penalties of power plants
Credit to Author: racosta| Date: Fri, 16 Aug 2019 21:15:47 +0000
President Duterte has reduced and condoned the real property taxes and penalties assessed on power generation facilities of some independent power producers (IPPs).
Executive Order No. 88, signed by the President, covers the power generating facilities of IPPs under build-operate-transfer (BOT) contracts with government-owned and-controlled corporations (GOCCs).
The EO, released by the Palace on Friday, also covers power purchase agreements, energy conversion agreements or other contractual agreements entered into with GOCCs.
The directive provided for the reduction and condonation of liabilities for real property tax, as well as special levies accruing to the Special Education Fund for calendar year 2018.
The EO reduced the dues 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 added that “all interests on such deficiency real property tax liabilities are also condoned and the concerned IPPs are relieved from payment thereof.”