President Ferdinand Marcos Jr. has signed Executive Order No. 83, reducing real property taxes for independent power producers (IPPs) operating under the build-operate-transfer (BOT) scheme with the government.
Under the order, all real property tax liabilities for 2024—including special levies on properties, machinery, and equipment directly used in electricity production—will be reassessed at 15% of their fair market value. Additionally, any interest and penalties on tax deficiencies will be waived, relieving affected IPPs from additional charges.
The directive follows concerns raised by the Department of Finance (DOF) regarding tax burdens on IPPs, which do not enjoy the same exemptions as government-owned and controlled corporations. The reduced tax rate will also apply to future real property tax liabilities.
The DOF has been instructed to provide the President with a progress report on the implementation of the order within six months.
