GINGOOG City Mayor Erick G. Cañosa expressed support for the tax exemption of electric cooperatives, including Misamis Oriental Rural Electric Cooperatives II (Moresco II), saying it would benefit consumers.
The exemption was announced by National Electrification Administration Administrator Antonio Mariano Almeda during the recent Misamis Oriental Power Consumers’ Forum in Gingoog City, late last month.
The move follows the issuance of Joint Memorandum Circular No. JMC2024-12-001 by the Department of Finance (DOF) and the Department of Energy, which grants tax relief to all electric cooperatives nationwide.
While many local officials favor the exemption, Cañosa warned that Moresco II must first settle its outstanding Real Property Tax debt of P67 million, which has been delinquent since 2017.
Medina Mayor Donato Chan said he would comply with the policy once an official regulation is received from the Department of Budget and Management or the DOF.
He noted that collecting local taxes from Moresco II would ultimately burden consumers.
Provincial Board Member Wayne Militante and Talisayan Vice Mayor Rommel Maslog argued that only Congress has the authority to amend tax laws under the Local Government Code.
Barangay Chairman Macaumbao Barotoc Jr. of Gingoog City questioned the fairness of the exemption, pointing out that Moresco II passes its costs to consumers while remaining profitable.
Officials now await further clarification on the exemption’s implementation and its potential impact on electricity rates.
