President Ferdinand Marcos Jr. has taken decisive action to benefit Independent Power Producers (IPPs) by signing Executive Order (EO) 36.
This order, made public on Friday and signed on July 25, aims to lower real property taxes (RPTs), interests, and penalties on the property, machinery, and equipment utilized by IPPs operating under a Build-Operate-Transfer (BOT) agreement.
The executive order is in accordance with Republic Act (RA) 7160, also known as the Local Government Code of 1991, which grants the President the authority to reduce or condone real property taxes and interests in the interest of the public.
In this case, the reduction and condonation will apply to power generation facilities of IPPs that have BOT contracts with government-owned and -controlled corporations (GOCCs).
President Marcos’s order covers all liabilities related to real property tax, including special levies for the Special Education Fund, for the year 2023.
It specifically applies to property, machinery, and equipment that are directly used by IPPs for electricity production under BOT schemes and similar contractual arrangements.
This move is expected to provide significant financial relief and support for the independent power producers in their operations. (ai/mnm)