Some barangays in areas covered by the Negros Oriental Electric Cooperative 1 have reportedly waived their rights to impose taxes on the real properties of NORECO, as mandated by the Department of Finance circular prescribing local government units to impose taxes, fees and other charges on electric cooperatives.

The Department of Finance has issued a circular on June 28, 2007 prescribing the guidelines for LGUs to impose taxes, fees and other charges on electric firms.

Based on Finance Circular No. 1-07, provinces, cities and municipalities may impose real property taxes on all electric cooperatives’ real properties such as electrical posts.

Since all barangays under NORECO I have been fully energized as of December last year, the electric cooperative is now setting its sights on energizing all the sitios in its coverage areas.

Institutional Services Divison Manager Edmund Nochefranca of NORECO I said, some barangay councils in Tayasan town have passed a resolution waiving their right to tax NORECO I real properties

Every now and then, NORECO I receives resolutions from barangays requesting for the survey and construction of lines in their areas.

 The current cost of construction will entail at least P350,000 per kilometer of power lines, he said.*RG

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