MANILA, Philippines — President Rodrigo Duterte has reduced and condoned the real property taxes and penalties assessed on power generation facilities of some independent power producers (IPPs).
The President signed Executive Order No. 126 on Thursday which covers IPPs under Build-Operate-Transfer (BOT) contracts with government-owned and controlled corporations (GOCCs).
The EO provided for the reduction and condonation of all liabilities for real property tax, including any special levies accruing to the Special Education Fund for calendar year 2020.
It reduces the liabilities to an amount equivalent to the tax due if computed tax based on an assessment level of 15 percent of the fair market value of the said property, machinery and equipment depreciated at the rate of 2 percent per year, less any amounts already paid by the IPPs.
All real property tax payments made by the IPPs over and above the reduced amount will be applied to their real property tax liabilities for the succeeding years.
Concerned government departments, agencies, including GOCCs and local government units (LGUs) are ordered to comply with the directive.