Capitol opens accounts for power firms’ tax dues

CEBU, Philippines — The Provincial Treasurer’s Office has opened trust fund accounts to which power providers can deposit their dues to the provincial government.

The treasurer’s office has opened 15 trust fund accounts, said Sugbo News, the official news site of the Cebu Provincial Public Information Office.

Power plants owe the province one centavo of the revenue they make per kilowatt hour, as directed by Department of Energy (DOE) Circular 2018-08-0022.

The provincial government, meanwhile, was required to create two trust funds per power provider since the revenue to be remitted to the province shall be directed to two separate funding projects – the Development and Livelihood Fund and the Reforestation, Watershed Management, and Enhancement Fund.

Last November 28, 2019, Governor Gwendolyn Garcia signed Memoranda of Understanding with Therma Visayas Inc., Korea Power Electric Corporation, Global Business Power, First Toledo Solar Energy, and Bantayan Island Power Corporation for the province to be able to collect dues.

The Provincial Board gave Garcia the authority to sign the agreements.

Capitol is yet to ascertain how much exactly each power provider owes the provincial government.

Quoting Provincial Treasurer Roy Salubre, Sugbo News also reported that another account will be opened for the province’s dues from DOE. This is because power producers have been channeling the shares of their revenues through the agency.

The amendments made by DOE Circular 2018-08-0022 were only brought to the province’s attention when Garcia met with representatives of Therma Visayas who informed Garcia about the new scheme.

After the talk, Garcia called up all power plants to inform them that the province will begin collecting dues from them. (FREEMAN)