Solons seek granting of tax rebate to buyers of renewable energy device or system Two lawmakers are seeking the granting of tax rebates to individuals who purchase renewable energy devices or systems. According to A Teacher Party-list Reps. Mariano U. Piamonte, Jr. and Juliet R. Cortuna, their proposal will entice the private sector and the public in general to shift to renewable energy. [Hon. Mariano U. Piamonte, Jr.] Piamonte said one of the stumbling blocks to the shift to renewable energy sources is the huge cost that the government will entail doing it. To reduce the cost, Piamonte said it is better to tap the private sector and the public to move along in the global effort to shift to renewable energy systems. To entice the private sector and the public in general to shift to renewable energy, tax rebates should be offered as incentives, Piamonte said. Cortuna said the climate change threat has not only been a speculation lately but has become a reality as shown by the strength of super typhoon Yolanda last year. [Hon. Julieta R. Cortuna] She said it is now an established fact in the scientific community that carbon emission has caused global warming that has eventually led to climate change. The need to shift to renewable energy sources has already been agreed upon by governments worldwide, but the pace of the shift is barely noticeable, said Cortuna. Piamonte and Cortuna jointly authored House Bill 4716, which provides that it shall be the policy of the State to promote the use of renewable energy to combat global warming that causes climate change. The bill provides that the Bureau of Internal Revenue (BIR) shall, upon request by an individual taxpayer, refund to the said taxpayer the amount not exceeding 50 percent of the tax he has paid for the immediately preceding taxable year or P50 million, whichever is lower, as rebates for the taxpayers purchase of renewable energy devices or components thereof such as but not limited to the following: a) Solar panels and, or support components; b) Wind turbines, assembly, parts and, or support components; c) Hydroelectric system, parts and, or components; d) Inverter parts, assembly or components; e) Charge controller parts, assembly or components; f) Power shortage batteries of any kind; g) Other renewable energy system or components as certified by the Department of Science and Technology (DOST). However, the amount of rebates should not exceed 60 percent of the amount of the purchase of renewable energy devices or components or system, the bill provides. The bill, now pending at the Committee on Ways and Means chaired by Rep. Romero Quimbo (2nd District, Marikina City), defines rebate as the refund or repayment by the government to a taxpayer who has duly paid his taxes. The rebate should be in the form of cash or similar instrument that could be readily available for use by the beneficiary. It defines renewable energy as the form of producing energy derived from environmentally friendly source such as solar, wind, hydro, geothermal, sea waves and other similar sources, which do not employ the use of fossil fuel or the likes of it. The measure further provides that the system purchase rebates shall include the cost of labor, consultancy and other related technology support services in connection with the installation of purchased renewable energy devices, parts or system by an individual. The Department of Finance (DOF), in cooperation with the Department of Science and Technology DOST), shall issue the necessary rules, regulation and guidelines for the implementation of the provisions of the proposed Act, based on the bill. SOURCE: Media Relations Service, Public Relations and Information Bureau
Posted on: Thu, 25 Sep 2014 05:49:17 +0000