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Marcos cuts 2025 property taxes for power producers to avert fiscal, energy risks
Business World Philippines
|December 04, 2025
PHILIPPINE President Ferdinand R. Marcos, Jr. ordered a reduction of real property taxes on independent power producers (IPP) for 2025, warning that full assessments could trigger defaults, strain state finances and disrupt power supply.
Executive Order (EO) No. 106, issued on Nov. 28 and published on Wednesday, lowers this year’s property-tax liabilities of IPPs —including special education fund charges — operating under build-operate-transfer and similar contracts with government-owned firms.
Taxes will now be based on 15% of fair market value, depreciated 2% annually, minus any payments already made.
The directive also wipes out all interest and penalties on unpaid obligations, with excess payments credited to future liabilities.
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