The Draft of the Philippine Biofuels Bill has an incentive scheme for biofuels producers:
- Specific tax will be 0 for both locally made and imported biofuels. Petro companies are allowed to import biofuels for mixing if the local supply cannot meet the demand.
- The sale of raw materials (not limited to coconut, jatropha, sugarcane, cassava, corn, and sweet sorghum) for conversion into biofuels will not be subjected to Value Added Tax (10~12% of the Gross Price.)
- All water effluents (not limited to distillery slops from the production of biofuels used as liquid fertilizer and for other agricultural purposes) will not be classified as wastewater and will therefore not be subjected to wastewater taxation (Section 13 of R.A. No. 9275, also known as the Philippine Clean Water Act:), Provided however that they will be subjected to monitoring by the DENR (Department of Environment) and DA (Department of Agriculture)
- All industries which engage in activities involving : production, storage, handling and transport of biofuel and biofuel feedstock, including the blending of biofuels with petroleum, shall be entitled to funding from the Development Bank of the Philippines, Land Bank of the Philippines, Quedancor and other government institutions providing financial service. This holds true if the application is submitted by a Filipino or by an entity that is 60% owned by Filipino’s.
Go Biofuels Bill Go!
Category: Law
December 27th, 2006 at 4:01 am
[…] DBP and Land Bank are both government banks. They are tasked to provide loans for biofuels producers, blenders and transporters in the Philippines as mandated in the the 2006 Philippine Biofuels Act. The distillery is targeted to produce 125,000 liters per day (35 to 39 million liters/year) of fuel grade ethanol while the power plant will have a capacity of 8 MW. […]