The Department of Energy (DOE) has issued a policy streamlining the process for renewable energy (RE) developers to avail of incentives, a move seen to attract more investors in developing nonconventional sources of energy in the country.
In a statement on Thursday, the agency said a new department circular simplifies requirements and ensures an efficient process for the availment of incentives as provided for under the Renewable Energy Act of 2008.
Energy Secretary Alfonso Cusi said one of the salient points of this policy was the automatic availment of the 10-percent corporate tax rate and zero-rate value added tax.
It means that savings derived from the reduced corporate income tax rate will be effectively passed on to electricity end users in the form of lower power rates.
“We are pleased to issue an amended policy that would address the long-standing concerns of the RE law’s target recipients, including RE developers, fabricators and manufacturers regarding the availment of the law’s incentives,” Cusi said.
Regular reviews
To assess the effectiveness of its latest guideline, the agency may conduct a review of the annual reports submitted by the RE developers to determine whether the objectives of the law have been achieved.
The new policy amends the implementing rules and regulations of the RE law. The DOE is expecting the new policy to promote the further development of renewables with domestic and foreign investors.
“It likewise seeks to accelerate the country’s transition toward energy sustainability by supporting the government’s principal goal of attaining clean and secure energy,” it added.
The DOE said the new circular was currently being processed for publication in two newspapers of general circulation.