DOE to apprise investors of fiscal incentives

By Myrna M. Velasco – December 2, 2022, 1:28 PM
from Manila Bulletin

The Department of Energy (DOE) will intensify efforts on apprising investors of the “fiscal incentives” that they could avail for their energy projects in the country.

In line with the celebration of the National Energy Consciousness Month (NECM), the agency indicated that it will lay down the registration process and access to financing facility procedures of the Fiscal Incentives Review Board (FIRB), an inter-agency body that has the final say as to the eligibility of projects for government tax incentives.

The tax perks that investors could secure would include income tax holiday, duty exemption and value-added tax exemption on importation; deductions; special corporate income tax rates; as well as VAT zero-rating on local purchases.

In the past years, availment of investment incentives had been among the hurdles baffling investors in the energy sector. Hence, this initiative of the DOE is a development they’ve always been hankering for to happen.

“This year’s forum will focus on the FIRB’s registration procedure for energy projects, financing facility and private sector experience in doing business in the energy sector,” the energy department noted.

Under the current government leadership, sharp focus is being set on enticing capital flow in the renewable energy sector as part of the country’s decarbonization agenda and sustainability goals.

Energy Secretary Raphael P. M. Lotilla said “maximizing the use of our indigenous energy resources is imperative for energy security and sustainability,” noting further that “our country has tremendous potential for renewable energy – such as solar, wind and ocean sources. Steadily, we are enhancing our renewable energy policies that would drive us our path toward energy sustainability.”

Just recently, the DOE announced the issuance of a Circular that will open the RE sector to 100-percent foreign ownership, ending more than 10 years of foreign investors’ hue and cry for them to have full inclusion in harnessing the green energy resources of the Philippines.

“The administration of President Ferdinand Marcos, Jr. is leading the way in accelerating and expanding the development of the country’s domestic energy sources. Foremost, the country is accelerating the development of renewable energy to increase its share in the power mix from the current 22-percent to 35-percent by 2030 and 50-percent by 2040,” the energy department stressed.

Another area of investment influx that the government has been counting on would be ‘energy efficiency’ — since that is seen as a quick fix it can be depended upon to save the country from threatening power supply crisis – especially in the Luzon grid.

The DOE emphasized that it will “spearhead a series of energy-related campaigns across the country through energy literacy and awareness among Filipinos, while highlighting the collective role of the government and the Filipino people in achieving a sustainable energy future.”