President Ferdinand Marcos Jr.聽鈥擬ARIANNE BERMUDEZ
MANILA, Philippines 鈥� President Ferdinand Marcos Jr. has issued an executive order reducing and condoning the real property taxes (RPTs), including interests and/or penalties, of independent power producers (IPPs) under the build-operate-transfer BOT scheme.
Executive Secretary Lucas Bersamin signed聽Executive Order No. 83 on February 13.
According to the order, all RPT liabilities for 2024, including special levies accruing to the Special Education Fund, on property, machinery, and equipment actually and directly used by IPPs for electricity production under BOT scheme and similar contracts, are reduced to the tax due based on a 15-percent assessment level of fair market value and depreciated at the rate of two percent per annum, minus payments paid.
Furthermore, all interests and/or penalties on RPT liabilities are also condoned, and the concerned IPPs are relieved from payment.
The order also states that all RPT payments made by IPPs over and above the reduced amount shall be applied to their liabilities for succeeding years.
鈥淎ll concerned departments, agencies, and instrumentalities, including government-qwned and controlled corporations and local government units, are hereby directed to strictly comply with this Order. Any violation of the provisions of this Order shall be dealt with in accordance with relevant laws, rules, and regulations,鈥� the order reads.