By Danessa Rivera (The
Philippine Star) | Updated July 31, 2017 - 12:00am
MANILA, Philippines - The National
Electrification Administration (NEA) is seeking tax exemptions for the 121
electric cooperatives (EC) from the proposed Tax Reform for Acceleration and
Inclusion Act.
NEA administrator Edgardo Masongsong
said they are currently working with rural electrification advocates from both
the executive and legislative branches of government for this initiative.
He said other ECs registered under
the Cooperative Development Authority (CDA) enjoy tax exemption privileges per
the provisions of Republic Act (RA) 7160 or the Local Government Code of
1991.
NEA is trying to get the Department
of Justice’s (DOJ) support on its position that the same law could be applied
to power coops under the NEA management too.
“We are looking forward to have the
favorable opinion of the DOJ that the electric cooperatives registered with NEA
be tax-exempt as well,” Masongsong said.
Apart from getting the DOJ on board,
the NEA chief said Sen. Sherwin Gatchalian, chairman of the Senate committee on
energy and his counterpart in the lower house, Marinduque Rep. Lord Allan Jay
Velasco, have been involved in these discussions along with the
Departments of Energy and Finance.
According to Chapter 3, Section 13
of RA 10531, the law governing the NEA, all non-stock and non-profit rural
energy distribution utilities are entitled to preferential rights granted to
cooperatives under the Local Government Code of 1991 and other related
laws.
The law also states that “as a
further incentive, the NEA may prioritize the grant of incentives in favor of
electric cooperatives that are managed effectively and efficiently and comply
consistently with its mandates and directives.”
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