Bill calling for tax exemption from property taxes on machinery owned by pushed non-profit distribution services – Manila Bulletin

The House of Representatives “power bloc” has called for the passage of a bill to grant a tax exemption on property taxes imposed on machines owned or controlled by non-profit distribution services.

PHILRECA Presley de Jesus party representative, APEC party representative Sergio Dagooc, Ako Padayon party representative Adriano Ebcas and RECOBODA party representative Godofredo Guya lamented that the property tax (RPT) imposes a financial burden on consumers of electricity as part of the charge passed on to electricity bills.

“The activity of an electric cooperative is imbued with public interest which gives life to national economic activity and promotes modernization and technological progress in rural areas. Therefore, if the assets used by the electric cooperatives are charged with these TOR, the end result would be an increase in the electricity bills paid by the end users, ”they said.

They noted that electricity cooperatives primarily serve residential end users.

“The consequence of serving residential consumers as opposed to commercial consumers is that there is a need for longer distribution lines and more distribution poles in the former as opposed to commercial areas which serve a limited area with sales. more electricity due to higher consumption. Therefore, the cost of building distribution facilities in residential areas requires more capital while barely increasing its electricity sales, ”they said.

According to them, the cost of construction and property taxes are part of the electricity bill of our fellow Filipinos, which ultimately results in a higher charging rate per kilowatt hour.

The Energy Block House introduced Bill No.8044 or the Non-Profit Distribution Utility Property Tax Exemption Bill, which aims to protect the interests of owner-consumer members (MCO ) and all electricity consumers.

“This bill will also clarify the issue of the tax exemption granted to all electric cooperatives under the laws in force. With the current COVID-19 pandemic, there has been an increase in unemployment and a shutdown of business activities across the country, ”they said while filing the measure.

“This fact has proven to be a burden on utility costs and basic livelihoods. The least we can do is protect our “kababayans” from further financial distress. The Filipino people deserve better; they deserve affordable electricity, ”they added.

Covered by the measure are all non-profit, non-profit electric cooperatives organized and registered under Presidential Decree No. 269, as amended.

Under HB No. 8044, all machines attached to the ground and owned or controlled by electrical cooperatives that are used for the distribution of electricity and its operations are exempt from property taxes.

The mechanisms provided for by the proposed law belong to those defined in Article 199 of Republic Law No.7160, otherwise known as the Local Government Code of 1990 and are not subject to any lien or charge. a mortgage contract, provides the bill.

The electric cooperative claiming exemption from property tax will be organized and registered with the National Electrification Administration (NEA), he said.

The bill mandates the NEA to require all nonprofit, non-shareholder, duly registered electricity cooperatives to submit proof of ownership or control of machines.

After the electrical cooperatives have been brought into compliance, the NEA will communicate to the corresponding local government unit the eligibility of the electrical cooperative for tax exemption.


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