COE endorses PE2 incentive recommendations to House Ways & Means Committee

  • PE2 president Alexander Ablaza (right foreground, left photo; and speaking, right photo) presents the latest position of PE2 on fiscal incentives under the EE&C bill in a meeting of the House Committee on Energy on 13 August 2018. (PE2 Photos by Luigi Eusebio)
    PE2 president Alexander Ablaza (right foreground, left photo; and speaking, right photo) presents the latest position of PE2 on fiscal incentives under the EE&C bill in a meeting of the House Committee on Energy on 13 August 2018. (PE2 Photos by Luigi Eusebio)

HOUSE OF REPRESENTATIVES, Quezon City, 28 August 2018 – The Committee on Energy (COE) of the House of Representatives transmitted to the Committee on Ways & Means (CWM) earlier today the Energy Efficiency and Conservation (EE&C) Bill, which now incorporates the fiscal incentive recommendations of the Philippine Energy Efficiency Alliance (PE2) manifested during the special COE meeting held on 13 August 2018.

During that meeting, COE was informed that PE2 issued a position paper for CWM on 31 July 2018, which called for new language for Section 20 (Fiscal Incentives) of the Substitute EE&C Bill, amid the recent approval of the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO, formerly known as TRAIN-2) substitute bill by the CWM on 31 July 2018. The Alliance reported to the energy panel that the TRABAHO bill effectively repeals fiscal incentives provisions of previous investment promotion laws, including E.O. 226, which continued to be the policy basis for the fiscal incentives provision in the Substitute EE&C bill. PE2 emphasized the need for the new Section 20 to: specify the recommended incentives for EE&C Projects that will be needed to ensure the financial viability of EE&C investments; remove its express reference to E.O. 226; identify the Board of Investments (BOI) as the lead investment promotion agency to administer the fiscal incentives for EE&C Projects; remove restrictions on ownership by nationality; and, define a minimum 15-year availment of the recommended fiscal incentives.

The COE members were briefed by PE2 on the need for 6-year income tax holiday, zero-rated valued added-tax, tax and duty-free importation incentives, relaxed restrictions on ownership by nationality, a minimum 15-year availment of the incentive package prior to review and to qualify EE&C projects by themselves as eligible economic activity under the Strategic Investment Priority Plan.

PE2 expects CWM to schedule a deliberation on the updated fiscal incentives section of the EE&C bill in September 2018.

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