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SECTION 1
Reduction and Condonation
SECTION 1.
Reduction and Condonation.
All liabilities for real property tax on property, machinery and equipment (including any special levies accruing to the Special Education Fund) actually and directly used by IPPs for the production of electricity under Build-Operate-Transfer contracts (whether denominated Power Purchase Agreements, Energy Conversion Agreements or other contractual agreements) with GOCCs, assessed by LGUs and other entities authorized to impose real property tax, for all years up to 2014, are hereby reduced to an amount equivalent to the tax due if computed based on an assessment level of fifteen percent (15%) of the fair market value of said property, machinery and equipment depreciated at the rate of two percent (2%) per annum, less any amounts already paid by the IPPs. All fines, penalties and interests on such deficiency real property tax liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof.
SECTION 2
Compliance by All Government Entities
SECTION 2.
Compliance by All Government Entities.
All concerned departments, agencies and instrumentalities of the government, including GOCCs and LGUs, are hereby ordered to strictly comply with this Executive Order.
SECTION 3
Repealing Clause
SECTION 3.
Repealing Clause.
All orders, issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this Order are hereby repealed, amended or modified accordingly.
SECTION 4
Separability Clause
SECTION 4.
Separability Clause.
If any provision of this Order is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting.
SECTION 5
Effectivity Clause
SECTION 5.
Effectivity Clause.
This Order shall take effect immediately upon its publication in a newspaper of general circulation.
DONE, in the City of Manila, this 31st day of October, in the year of Our Lord, Two Thousand and Fourteen.
(Sgd.)
BENIGNO S. AQUINO III
By the President:
(Sgd.)
PAQUITO N. OCHOA, JR.
Executive Secretary