THE Iloilo Provincial Investments and Promotion Board (IPIPB) approved the 10-year tax relief for Palm Concepcion Power Corporation during its first quarterly meeting on Wednesday, May 11.
PCPC, a coal plant operating in the province, submitted an application for tax relief, is the first big-ticket investor to be given the exemption in pursuant to the 2015 Iloilo Provincial Investment and Incentives Code.
Iloilo Provincial Governor Arthur Defensor Sr., who chairs the IPIPB, reviewed and approved the application.
PCPC qualified for the tax exemption following its compliance with the minimum capitalization, registration requirements, filing fee of P25,000 (for large scale investment) and 60 percent local employment prescribed in the Code.
Provincial Administrator Raul Banias said PCPC, as a new investor, brought in P12.5-billion for the development of energy resource which is among the priority investment areas in the province.
PCPC manages the operation of 135-megawatt coal-fired power plant in Sitio Puntales, Barangay Nipa, Concepcion, Iloilo.
On the first and second year of implementation, PCPC is free from paying real property tax.
On the succeeding years, a gradual reduction of 90% (3rd year), 80% (4th year), 70% (5th year), 60% (6th year), 50% (7th year), 40% (8th year), 30% (9th year), and 20% (10th year) on its tax due will be imposed.
PCPC is a joint venture between Palm Thermal Consolidated Holdings Corporation (PTCHC) and Jin Navitas Resource Incorporated (JNRI).
A Brown Company, Inc. (ABCI) used its wholly-owned subsidiary, PTCHC, to acquire PCPC from DMCI Power Corporation (DPC) in December 2010. JNRI agreed to participate in the Project and invested in PCPC.
Officials of the provincial government are encouraging others to apply and avail of the 10-year tax incentives provided under the Code.
The qualified enterprises, companies or corporations are those engaging in agri-business, tourism and other tourism oriented enterprises, manufacturing, property development and services and other services oriented enterprises.
News or existing enterprises must file its application for registration with IPIPB through the Local Economic Development and Investment Promotion Center within 60 days from the start of the operation to qualify for incentives.
Qualified investors/enterprises shall be considered to have waived their privilege to avail of the incentives provided in the Code if no such application is received within the specific period. (Jezza Nepomoceno)
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