The Power Sector Assets and Liabilities Management (PSALM) Corporation has reduced its Real Property Tax (RPT) liabilities for 2024 from five Build-Operate-Transfer (BOT) power plants.
This reduction was through Executive Order (EO) No. 83, issued on February 13, 2025, which reduces and condones RPT liabilities, including interests and penalties, for power generation facilities and independent power producers (IPPs) under BOT contracts with government-owned corporations.
It slashed the total amount from Php 626.46 million to Php 116.52 million. This results in savings of Php 509.94 million.
The EO sets the 2024 RPT assessment level at 15% of the fair market value of assets, depreciated at 2% per year, minus any payments already made by IPPs.
Since 2011, similar executive orders have been issued annually to alleviate the tax burden on power facilities.
PSALM President and CEO Dennis Edward A. Dela Serna said that while IPPs are technically liable for RPT, PSALM and the National Power Corporation ultimately shoulder these obligations.
“The reduction and condonation of RPT liabilities under EO No. 83 provide much-needed financial relief to PSALM and our partner IPPs…This allows us to manage our obligations more effectively while ensuring the continuous and stable supply of electricity,” said Dela Serna.
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