Dionefred Macahig, officer-in-charge of Noreco 2, said that from P10.17 p/kwh, the new rate would be P9.90 starting from the October billing.
The BIR approved the request of the Noreco 2 to exempt it from collecting VAT, after more than one year of lobbying by 2nd District Rep. George Arnaiz and 3rd District Rep. Pryde Henry Teves, according to James Fontelo, Noreco 2 chairman.
The announcement was made after a congressional hearing held in Cebu City last week organized by the CDA.
Under Republic Act 9520, electric cooperatives that are registered with the Cooperatives Development Authority are exempt from the 12 percent VAT collection, effectively reducing the electric bill by a range of Php .18 to Php.22 p/kwh.
The Certificate of Tax Exemption is valid for a period of five years, or until Oct. 11, 2016. (PNA/Juancho Gallarde)