PubCon on the Tax Recovery Adjustment Mechanism in the Rates of PUs
The draft Rules prescribing the Tax Recovery Adjustment Mechanism in the Rates of Private Utilities (PUs) is scheduled for Public Consultation (PubCon) on April 21, 2006 at 9:30 A.M. at the ERC Hearing Room, 15th Floor, Pacific Center Bldg., San Miguel Ave., Ortigas Center, Pasig City.
Pursuant to Section 43 (f) of Republic Act (R.A.) No. 9136 which provides that the rates of the regulated entities must ensure full recovery of all just and reasonable costs to enable them to operate viably, the draft Rules prescribes the recovery of local franchise taxes that are levied upon PUs pursuant to Sections 137 and 151 of Republic Act (R.A.) No. 7160 also known as the Local Government Code of 1991.
“The
draft Rules provides two (2) adjustment formulae, the first is called
the Franchise Tax Formula which shall be utilized by the PUs to calculate
and recover from their customers the franchise tax upon the effectivity
of this Rules, while the second is the Tax Recovery Adjustment Charge
(TRAC) formula which shall be for the recovery of franchise tax arrearages
paid prior to the implementation or effectivity of the Franchise Tax
Formula,” ERC Chairman Rodolfo B. Albano, Jr. explained.
“The ERC encourages full cooperation and participation of the
different concerned stakeholders and are advised to submit their comments
on or before April 10, 2006 to be allowed to participate in the said
PubCon,” Chairman Albano concluded.