Republic Act 9367, otherwise known as the Biofuels Act of 2006, mandates the use of biofuels in the country. It was signed into law on January 12, 2007 – the first of its kind in Southeast Asia.
The law mandates a 1% locally-sourced biodiesel blend in diesel fuel within three months from the law's effectivity, 5% locally-sourced bioethanol blend in gasoline and 2% biodiesel within two years, and a 10% bioethanol in four years.
RA 9367 is investor-friendly. It provides tax incentives and financial assistance to encourage investments in biofuels. The tax incentives include a 0% specific tax on local or imported biofuel component per liter of fuel. Another is the exemption of the sale of raw material used in the production of biofuels from the Value Added Tax.
The production of biodiesel in the Philippines is projected to increase by 143.90 million liters in 2011 with the mandated 2% blend. The Corporation has considered jatropha as its primary feedstock for biodiesel production. By 2014, the biodiesel production in the country is projected to reach 160.70 million liters.
(+632) 8120651 loc. 356
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info@pnoc-afc.com.ph
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