Group welcomes tax break proposal for biofuels makers

The Philippine Biodiesel Association (TPBA) has welcomed the lowered income tax level of 15 percent offered by Senators Juan Ponce Enrile and Ralph Recto for the producers and manufacturers of biofuels for blending into locally available petroleum fuels under Senate Bill 2226.

TPBA convenor Cris T. Michelena said this will serve as an additional incentive for this pioneering industry to entice more investors and develop much more rapidly in an increasingly more competitive global community.

"This new income stream in the newborn biofuels industry will further help the government in the enforcement of the legislated mandated blends even as it supports the national objective of weaving the country away from 100 percent imported petroleum fuels and further controlling the budget deficit," he said.

Michelena said "it is the nationalistic thing to do in support of the Republic, as it is on a presumed income for those engaged in its manufacture and development."

Michelena said, the other incentives contemplated, serves to bring down the risks and costs of biofuel manufacture and processing for the investor, such that its selling price will still generate real savings for the motorist-consumer who will be further encouraged in its use.

At the same time, the TPBA is urging the Senate to pass the Biofuels Act of 2006 or SB 2226 which is certified by President Arroyo for immediate enactment.

"It has been more than a month since SB 2226 was last taken up in Senate on Aug. 16. The Department of Energy (DOE) recently submitted the revisions as firmly proposed by Enrile, Recto to Sen. Miriam Defensor-Santiago (chairman of the Senate Committee on Energy)," Michelena said.

According to Michelena, the legislators should look at the recent disaster (Typhoon Milenyo) as a good reason to help coconut farmers.

"Coco-biodiesel, an indigenous energy source, can be a real revenue earner for the government as it spurs rural economic growth with a new income stream. Especially today after Milenyo, so the coconut farmers in affected areas can earn a little more than whatever is left of their produce, at least to allow them to recover," Michelena said.