BOI invites PE2 to TRABAHO-SIPP consultations

  • BOI invites PE2 to TRABAHO-SIPP consultations
  • BOI invites PE2 to TRABAHO-SIPP consultations

MAKATI CITY, 9 October 2018 – The Board of Investments (BOI) invited the Philippine Energy Efficiency Alliance (PE2) and other energy sector stakeholders to public consultations on the Strategic Investment Priorities Plan (SIPP) under the pending TRABAHO (formerly known as TRAIN-2) bill. The consultations will be held this afternoon at the Philippine International Convention Center.

Dr. Ceferino S. Rodolfo, Trade and Industry Undersecretary and BOI Managing Head will open the BOI-organized event. Usec. Karl Kendrick T. Chua of the Department of Finance (DOF) will present the proposed incentives package under the TRABAHO bill, while DTI Assistant Secretary Rafaelita M. Aldaba will be discussing the SIPP framework and criteria.

PE2 will be represented by its president Alexander Ablaza and treasurer Theresa Acedillo Lapuz.

In the last 6 months, the Alliance has been forwarding its position to the DOF, the TRABAHO bill authors and the House Committee on Ways and Means, seeking the exclusion of the energy efficiency and conservation (EE&C) from the incentive rationalization scope of the TRABAHO bill.

Furthermore, PE2 declared that EE&C projects will need at least six (6) years of income tax holiday (ITH) availment, based on the entire cost of the EE&C project (and not just a portion of the cost of capital equipment), and therefore excluded from the three (3) year ITH limit set in the proposed bill. Aside from the other tax incentives listed in the bill, EE&C projects should be entitled to customs duty incentives and zero-rated valued added tax through the limited life of the energy services agreement, typically up to ten (10) years in contract term. The commercial viability of third-party capital flows toward EE&C projects remains critically dependent on this comprehensive tax-based incentive package.

The Alliance likewise believes that the Fiscal Incentives Review Board (FIRB) and the various Investment Promotion Agencies (IPAs) will need to expressly identify EE&C projects as an economic activity qualified in the SIPP for a period no shorter than fifteen (15) years, to be able to jumpstart private sector capital flows through the next 22 years of EE&C roadmap implementation.

PE2 also manifested its view that, unlike Article 32 of E.O. 226, series of 1987, the TRABAHO bill should be clear in allowing up to 100% Filipino or foreign ownership of energy efficiency & conservation (EE&C) projects as registered enterprises eligible for fiscal incentives, especially because EE&C projects are, by nature, not public utilities.
 

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The Philippine Energy Efficiency Alliance, Inc. (PE2) is a non-stock, non-profit organization of energy efficiency market stakeholders.

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  • Philippine Energy Efficiency Alliance, Inc. (PE2)
    19/F Philippine AXA Life Centre 
    Senator Gil Puyat Avenue 
    corner Tindalo Street 
    Makati City, Metro Manila 
    Philippines 1200
  • +63 2 759 6680 (ext 231)
  • secretariat@pe2.org
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