ECCP pushes for zero-vat on tax for ecozone locators

CEBU, Philippines - The European Chamber of Commerce in the Philippines (ECCP) plans to talk with the Visayan Electric Company (VECO) to ease the energy tax for Philippine Economic Zone Authority (PEZA) registered companies in Cebu.

In an interview with ECCP executive vice president Henry J. Schumacher, he said that the chamber will soon talk with VECO officials on this matter, to help economic zone locators, including the Business Process Outsourcing (BPOs) to cut energy usage at least up to 30 percent.

Schumacher said a zero-vat for economic zone locators will be pushed, specifically that the export sector and companies that are serving the international market are having difficulties due to the global economic softening.

The ECCP program is aimed at cutting 30 percent of energy usage for export firms including the outsourcing companies in the country’s economic zones.

Undertaken jointly by the European Chamber of Commerce of the Philippines (ECCP) and the Philippine Economic Zone Authority (PEZA), the “Energy SMART” program is expected to encourage locators in ecozones to pursue energy efficiency measures.

Started in 2010, ECCP’s Energy SMART program is a campaign that aims to provide companies knowhow and systems that will lead to significant energy savings in their operations, make them competitive in the international market, and forge partnerships with energy solutions providers and green financing institutions.

ECCP president Michael Raeuber and PEZA Director General Lilia de Lima recently signed the implementing rules and regulations (IRR) that prescribe procedures and guidelines to the memorandum of agreement (MOA) the two sides entered into earlier.

Under the IRR, energy audits can now be conducted by Energy SMART program through its accredited service and technology providers.

Energy SMART program will also recommend actions that will promote good housekeeping and appropriate investments that will lead to reductions in energy usage.

ECCP said that evidence has shown that investments in energy efficiency can lead up to 30 percent reduction in energy consumption.

The pay-back period for the investment can be as short as six months and rarely exceeds three years, ECCP said.

The IRR states that PEZA will be responsible for encouraging all locators to undertake the energy audit.   It also calls on PEZA to require locators to submit monthly reports on the status and implementation of the program.

The Energy SMART team of the ECCP in turn will submit to PEZA an annual comprehensive report on the status, challenges, and future directions of the program.

The chamber will also assist PEZA in monitoring the performance of ecozone locators and in recognizing the achievers among ecozone locators in the field of energy efficiency and conservation.

A new category in the Annual PEZA Awards will be created to recognize these achievers in energy efficiency.

According to Schumacher, the ECCP will also make this program adopted in Cebu and be enjoyed by the economic zone locators here, now in possible partnership with VECO. /JOB (FREEMAN)