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Compliant power cooperatives to be granted exemption from local taxes

The article from BusinessWorld discusses a new policy in the Philippines where power cooperatives that comply with the Department of Energy's (DoE) standards will be exempted from local business taxes. This initiative, outlined in a memorandum circular signed by Energy Secretary Raphael P.M. Lotilla, aims to encourage compliance with the Electric Power Industry Reform Act (EPIRA) of 2001. The exemption applies to cooperatives that meet the DoE's performance standards, which include maintaining a system loss rate of 12% or less, adhering to the Magna Carta for Residential Electricity Consumers, and ensuring timely submission of required reports. This move is intended to promote efficiency and accountability among electric cooperatives, potentially reducing the financial burden on these entities and ultimately benefiting consumers through better service and possibly lower rates. However, the article also notes that this exemption could lead to a revenue shortfall for local government units, prompting discussions on how to balance the benefits to cooperatives with the fiscal needs of local governments.

Read the Full BusinessWorld Article at:
[ https://www.bworldonline.com/economy/2024/12/04/639415/compliant-power-cooperatives-to-be-granted-exemption-from-local-taxes/ ]