The Supreme Court (SC) has upheld the tax-exempt status of Semirara Mining and Power Corp. on fuel imports, a ruling that reinforces fiscal incentives for the domestic coal industry. In a 12-page decision promulgated on Jan. 20 and released last week, the high court's Third Division ordered the government to refund about P27 million in taxes paid under protest.
The decision, as reported by BusinessWorld , stems from a dispute over the imposition of value-added tax (VAT) and other duties on imported fuel used for Semirara's mining operations. The SC ruled that the company is entitled to tax exemptions under existing laws and regulations governing the mining sector.
Semirara Mining and Power Corp., a major coal producer and power generator in the Philippines, stands to benefit from the ruling. The company operates the Semirara coal mine in Antique province and supplies coal to its own power plants and other industrial users.