Aklanon electric consumers might just experience improved services and expanded electricity access. That is, if the Aklan Electric Cooperative qualifies for local tax exemption set by the Department of Energy (DOE) and Department of Finance (DOF)
The government has announced this significant move to support electric cooperatives (ECs) by exempting qualified ones from local taxes.
The exemption was formalized through a Joint Circular signed by the DOE and the DOF, which was witnessed by National Electrification Administration (NEA) Administrator Antonio Mariano C. Almeda and Undersecretary Bayani H. Agabin representing the DOF.
This exemption, if granted to Aklan Electric Cooperative, is expected to provide financial relief and enable the cooperative to reinvest savings into improving services and expanding electricity access.
“This tax exemption is a significant milestone for our qualified ECs, as it directly translates to reduced financial burdens that can be reinvested into improving services and achieving 100 percent total electrification,” said Energy Secretary Raphael Lotilla. “By reducing these costs, we empower them to focus on expanding access to electricity, especially in unserved and underserved areas, ensuring no Filipino household is left behind,” he added.
To qualify for the exemption, ECs must meet specific criteria set by the including maintaining high collection efficiency, achieving a positive net worth, and meeting system reliability standards. The exemption covers local taxes such as real property taxes, business tax, franchise tax, and tax on transfer of real property ownership. It does not apply to regulated and reasonable administrative costs imposed by Local Government Units (LGUs), which are governed by existing guidelines.
The NEA is expected to release guidelines on issuing “Certificates of Compliance” for qualified ECs within 15 days from the effectivity of the Joint Circular.
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