Article 170p. 170

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

(1) Fiscal Incentives — Consistent with the provisions of

E.O. 226, otherwise known as the Omnibus Investments

Code, the following tax incentives shall be granted:

(a)

Tax

and

Duty

Exemption

on

Imported

Capital

Equipment and Vehicles — Within ten (10) years upon

effectivity of this Act, LGUs, enterprises or private entities

shall enjoy tax and duty-free importation of machinery,

equipment, vehicles and spare parts used for collection,

transportation,

segregation,

recycling,

re-use

and

composting

of

solid

wastes:

Provided,

That

the

importation of such machinery, equipment, vehicle and

spare parts shall comply with the following conditions:

(i) They are not manufactured domestically in sufficient

quantity, of comparable quality and at reasonable prices;

(ii) They are reasonably needed and will be used actually,

directly

and

exclusively

for

the

above

mentioned

activities;

(iii) The approval of the Board of Investment (BOI) of the

DTI for the importation of such machinery, equipment,

vehicle and spare parts.

Provided, further, That the sale, transfer or disposition of

such machinery, equipment, vehicle and spare parts,

without prior approval of the BOI, within five (5) years

from

the

date

of

acquisition

shall

be

prohibited,

otherwise, the LGU concerned, enterprises or private

entities and the vendee, transferee or assignee shall be

solidarily liable to pay twice the amount of tax and duty

exemption given it.

(b) Tax Credit on Domestic Capital Equipment — Within

ten (10) years from the effectivity of this Act, a tax credit

equivalent to 50% of the value of the national internal

revenue taxes and customs duties that would have been

waived on the machinery, equipment, vehicle and spare

parts, had these items been imported shall be given to

enterprises, private entities, including NGOs, subject to

the

same

conditions

and

prohibition

cited

in

the

preceding paragraph.

(c) 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 waste 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 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) Extension of Grants to LGUs — Provinces, cities and

municipalities whose solid waste management plans

have been duly approved by the Commission or who

have been commended by the Commission for adopting

innovative solid waste management programs may be

entitled to receive grants for the purpose of developing

their technical capacities toward actively participating in

the program for effective and sustainable solid waste

management.

(5) Incentives to Host LGUs — Local government units

who host common waste management facilities shall be

entitled to incentives.

CHAPTER

V

Financing

Solid

Waste

Management

SECTION 46. Solid Waste Management Fund. — There is

hereby created, as a special account in the National

Treasury,

a

Solid

Waste

Management

Fund

to

be

administered by the Commission. Such fund shall be

sourced from the following:

(a) Fines and penalties imposed, proceeds of permits

and licenses issued by the Department under this Act,

donations, endowments, grants and contributions from

domestic and foreign sources; and

(b)

Amounts

specifically

appropriated for the Fund

under the annual General Appropriations Act.

The Fund shall be used to finance the following:

(1) products, facilities, technologies and processes to

enhance proper solid waste management;

(2) awards and incentives;

(3) research programs;

(4)

information,

education,

communication

and

monitoring activities;

(5) technical assistance; and

(6) capability building activities.

LGUs are entitled to avail of the Fund on the basis of

their approved solid waste management plan. Specific

criteria for the availment of the Fund shall be prepared

by the Commission.

The fines collected under Sec. 49 shall be allocated to

the LGU where the fined prohibited acts are committed

in order to finance the solid waste management of said

LGU. Such allocation shall be based on a sharing scheme

between the Fund and the LGU concerned.

In no case, however, shall the Fund be used for the

creation of positions or payment of salaries and wages.

SECTION

47.

Authority

to

Collect

Solid

Waste

Management Fees. — The local government unit shall

impose fees in amounts sufficient to pay the costs of

preparing, adopting, and implementing a solid waste

management plan prepared pursuant to this Act. The

fees shall be based on the following minimum factors:

(a) types of solid waste;

(b) amount/volume of waste; and

(c)

distance

of

the

transfer

station

to

the

waste

management facility.

© 2018 Compiled by RGL

170 of 244