The Department of Energy issued a new circular simplifying the rules governing Republic Act No. 9513, or Renewable Energy Act of 2008.
Energy Secretary Alfonso Cusi signed on Dec. 24 Department Circular DC2021-12-0042, amending Sections 13 (E) and 18 (C) of DC No. DC 2009-05-0008, which cover the implementing rules and regulations of the RE Law.
“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. This includes, among others the implementation of the tax provisions, particularly the automatic availment of the 10-percent corporate tax rate and zero-rate value added tax,” Cusi said in a statement.
The new circular simplifies requirements for availment of the incentives, while ensuring proper availment through an efficient government process.
It also complies with the law, which provides that savings derived from the availment of the reduced corporate income tax rate will be effectively passed on to the electricity end-users in the form of lower power rates.
The department said the amendment of the RE Act’s IRR would promote the further development of renewables with domestic and foreign investors.
It also seeks to accelerate the country’s transition toward energy sustainability by supporting the government’s principal goal of attaining clean and secure energy.
To assess the effectiveness of the latest DC, the DOE may conduct a review of the annual reports submitted by RE developers to determine whether the objectives of the RE Act were met.
The new department circular is being processed for publication in two newspapers of general circulation and will become effective 15 days after publication.