Posted on 09:21 PM, November 21, 2010
THE ENERGY department will push through with contracting rounds next month despite an unresolved issue raised by the Commission on Audit (CoA) on taxation in projects covered by these deals, Energy Secretary Jose Rene D. Almendras told reporters late last week.
"It’s pushing through in December. We’re offering 12 or 15 new oil and gas sites and I think five coal sites and six geothermal sites," Mr. Almendras said.
He clarified that this does not mean CoA’s question on the government’s practice of deducting corporate taxes from the 60% state share in the net sales of these ventures has been resolved. The department had cited Presidential Decree 87, issued in 1972, as basis for this incentive.
"We’re still hoping to come to a resolution. We are engaging CoA in discussions right now," he said.
Mr. Almendras added that the government will cancel awarded contracts that are found to be idle. "One of the things we’re pushing in this government is that we will not tolerate service contracts that are not being attended to. If you commit to a service contract and there’s a work program that you commit to, then we will certainly encourage you to abide by it. Otherwise, we’re going to cancel your service contract and we’ll give it to somebody who’s more serious," said Mr. Almendras.
The areas that may be offered for contracts are located in Cagayan Valley, Central Luzon, Mindoro, northwest and eastern Palawan, Cebu, South Cotabato, Surigao del Sur and Zamboanga del Norte. -- ENJD
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