Photo from Pexels | Polina Tankilevitch
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The Extended Producer Responsibility Act (EPRA) of 2022 is an Act institutionalizing the extended producer responsibility on plastic packaging waste, amending R.A. No. 9003, otherwise known as the Ecological Solid Waste Management Act of 2000. It was crafted in response to the clamor to regulate single-use plastics and their production, importation and disposal by industries.
It requires large companies to adopt and implement policies for the proper management of plastic packaging wastes.
Incentives
- Rewards and recognitions, monetary or otherwise, shall be provided to individuals, private organizations and entities, obliged enterprises, and Producer Responsibility Organizations (PROs).
- An incentive scheme is hereby provided for the purpose of encouraging LGUs, enterprises, or private entities, including obliged enterprises, PROs, and Non-government Organizations (NGOs), to develop or undertake an effective solid waste management, including recovery and diversion of plastic product footprint, or actively participate in any program geared towards the promotion thereof as provided for in this Act, as amended.
1. Fiscal Incentives
-
- Tax Incentives – Any provision of law to the contrary notwithstanding, obliged enterprises or PROs acting on their behalf, and other registered business enterprises may apply for incentives following the approval process provided under Title XIII of the National Internal Revenue Code of 1997, as amended, for eligible activities: Provided, That such activities shall undergo the standard processes in the identification of qualified activities under the Strategic Investment Priority Plan (SIPP).
- The Extended Producer Responsibility (ERP) expenses of obliged enterprises, PROs, and private enterprises shall be considered as necessary expenses deductible from gross income subject to the substantiation requirements for necessary business expenses deductible from gross annual income in accordance with Sec. 34 (A)(1) of the National Internal Revenue Code of 1997, as amended.
- Tax and Duty Exemption of Donations, Legacies and Gift – All legacies, gifts and donations to LGUs, enterprises or private entities, including NGOs, for the support and maintenance of the program for effective solid wastes management shall be exempt from all internal revenue taxes and customs duties, and shall be deductible in full from the gross income of the donor for income tax purposes.
2. Non-Fiscal Incentives – LGUs, enterprises or private entities availing of tax incentives under this Act shall also be entitled to applicable non-fiscal incentives provided for under E.O. 226, otherwise known as the Omnibus Investments Code.
The Commission shall provide incentives to businesses and industries that are engaged in the recycling of wastes and which are registered with the Commission and have been issued ECCs in accordance with the guidelines established by the Commission. Such incentives shall include simplified procedures for the importation of equipment, spare parts, new materials, and supplies, and for the importation of equipment, spare parts, new materials, and supplies, and for the export of processed products.
3. Financial Assistance Program- Government financial institutions such as the Development Bank of the Philippines (DBP), Landbank of the Philippines (LBP), Government Service Insurance System (GSIS), and such other government institutions providing financial services shall, in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, accord high priority to extend financial services to individuals, enterprises, or private entities engaged in solid waste management.
4. Incentives to Host LGUs – Local government units who host common waste management facilities shall be entitled to incentives.
Related Articles:
- BIR Revenue Regulations No. 05-19: Implementing Tax Incentives of the Philippine Green Jobs Act of 2016
- Tax Incentives for persons caring for and living with PWDs
Click here to subscribe to our newsletter
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
All rights reserved.
