Reduction And Condonation Of Real Property Taxes And Interest/penalties Assessed On The Power Generation Facilities Of Independent Power Producers Under Build-Operate-Transfer Contracts With Government-Owned And/or -Controlled Corporations

Case Overview and Summary

Summary of Executive Order No. 173

Reduction and Condonation of Real Property Taxes and Interest/Penalties on Power Generation Facilities of Independent Power Producers (IPPs) under Build-Operate-Transfer Contracts with Government-Owned and/or -Controlled Corporations (GOCCs):

- Reduction of real property tax liabilities (Section 1):
    - For property, machinery and equipment used by IPPs for electricity production under Build-Operate-Transfer contracts with GOCCs.
    - Assessed by Local Government Units (LGUs) and other entities for all years up to 2014.
    - Reduced to an amount equivalent to 15% of fair market value, depreciated at 2% per annum.
    - Less any amounts already paid by the IPPs.

- Condonation of fines, penalties and interests (Section 1):
    - All fines, penalties and interests on the deficiency real property tax liabilities are condoned.
    - IPPs are relieved from payment thereof.

- Compliance by all government entities (Section 2):
    - All concerned departments, agencies, instrumentalities, GOCCs and LGUs are ordered to strictly comply.

- Repealing Clause (Section 3):
    - All orders, issuances, rules and regulations inconsistent with this Order are repealed, amended or modified.

- Separability Clause (Section 4):
    - If any provision is declared invalid or unconstitutional, other unaffected provisions remain valid.

- Effectivity Clause (Section 5):
    - This Order takes effect immediately upon publication in a newspaper of general circulation.