Pursuant to the provisions of Sections 4 and 244 of the National Internal Revenue Code of 1997 as amended, and Art. 144 of Republic Act 9520 otherwise known as the Philippine Cooperative Code of 2008, the Joint Rules and Regulations were put into effect to implement Articles 60 and 61 of RA 9520 granting tax exemption to cooperatives.
NORECO II is pleased to announce to its member-consumers that it has been successfully granted a Certificate of Tax Exemption by the Bureau of Internal Revenue, executed by Perfecto L. Aranas, BIR regional director of Region 12, Bacolod City on Oct. 11, 2011. The certificate shall be valid for five years or until Oct. 11, 2016, as provided under Section 14 of the Joint Rules and Regulations.
Under this CTE, the Coop’s revenues on System Loss, Distribution, Supply, Metering, and Lifeline subsidy are exempted from VAT. In effect, the exemption translates to a power reduction in the electric bill of NORECO II consumers of about P 0.15 to P 0.18 per kilowatt hour starting the billing month of October 2011.
The privilege of VAT exemption on the above charges can only be availed by cooperatives registered under the Cooperative Development Authority. (Beverly Gonzalez/NORECO II)