DOF, BIR issue rules granting VAT exemption for natural gas transactions

Wazzup Pilipinas!? 

The Department of Finance, upon the recommendation of the Bureau of Internal Revenue (BIR), has issued new revenue regulations granting value-added tax (VAT) exemption on indigenous natural gas and related power generation, supporting the government’s push to develop the country’s natural gas industry.

The regulations implement fiscal incentives under Republic Act No. 12120 or the Philippine Natural Gas Industry Development Act, which promotes natural gas as a safe, efficient, and cost-effective energy source, while providing clear guidelines on the availment of VAT exemptions.

Under the rules, VAT exemption applies to the sale and purchase of indigenous natural gas, aggregated gas, and electricity generated using such gas, including ancillary services tied to power generation.

The exemption for aggregated gas, however, applies only to the portion attributable to indigenous natural gas, ensuring that incentives are properly targeted.

Covered transactions include those undertaken by suppliers, aggregators, resellers, and generation facilities, as well as participants in the Philippine downstream natural gas industry, subject to certification by the Department of Energy (DOE).

The BIR said the issuance provides clear guidelines on the availment of VAT incentives, including documentation and certification requirements to verify compliance.

To qualify, participants must present an endorsement from the DOE’s Oil Industry Management Bureau, along with certification indicating the volume and percentage of indigenous natural gas sold during the taxable quarter.

Generation facilities must obtain certification from DOE’s Electric Power Industry Management Bureau, confirming their use of indigenous natural gas and the amount of electricity produced from such gas.

Participants and generation facilities must attach their DOE permit to the endorsement documents.

The BIR regulations also include safeguards to prevent misuse of incentives.

Under the rules, availment of fiscal incentives under Title XIII of the Tax Code disqualifies entities from availing of similar incentives under RA 12120 and other special laws, reinforcing proper compliance and accountability.

BIR Commissioner Charlito Martin R. Mendoza highlighted the importance of natural gas to the country’s energy strategy and reaffirmed the Bureau’s commitment to sound tax administration.

“The BIR acknowledges the potential of natural gas to lower energy costs and help achieve national energy security. These regulations fully implement the mandates of RA No. 12120 by providing clear guidance on the availment of incentives that will support investment in the Philippine Natural Gas Industry,” said Mendoza.

“By establishing transparent and well-defined processes for VAT incentives on indigenous natural gas, we strengthen both the competitiveness of cleaner energy sources and the integrity of our tax system,” he added.

In line with the directive of President Ferdinand R. Marcos Jr. and the policy direction of Finance Secretary Frederick D. Go, the BIR continues to support priority industries while strengthening revenue administration.

The regulations will take effect 15 days after publication in the Official Gazette or on the BIR website, whichever comes first.

For more details, please visit the BIR’s website:

https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%202-2026.pdf

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BIR FACILITATES PNOC EMERGENCY FUEL IMPORTATION, READIES EXPEDITED PROCESSING OF FUTURE FUEL IMPORTS

Wazzup Pilipinas!? 

The Bureau of Internal Revenue (BIR) has facilitated the emergency importation of petroleum products by PNOC Exploration Corporation (PNOC-EC) through the issuance of a special permit by the Bureau’s Large Taxpayers Service (LTS).

This forms part of the government’s response under Executive Order No. 110, s. 2026, “Declaring a State of National Energy Emergency and Authorizing the Unified Package for Livelihoods, Industry, Food, and Transport.”

PNOC-EC had earlier informed the BIR that it would immediately undertake the importation of petroleum products as an emergency measure. In response, the Bureau, through the LTS, worked with PNOC-EC on the documentary and procedural requirements for issuing the special permit and processing the import transaction.

In anticipation of future fuel importation by PNOC, the BIR is working with the company on the documentary requirements to support expedited processing on the Bureau’s end.

“The BIR, through its Large Taxpayers Service, will continue to work closely with PNOC to ensure the timely processing of requirements for current and future emergency fuel importations, in support of the whole-of-government response authorized under Executive Order 110 to help safeguard the country’s energy supply,” Commissioner Charlito Martin R. Mendoza said.

The "Fast Food" Ocean: How Climate Change is Starving the Marine World

Wazzup Pilipinas!? 

In the vast, churning blue of the Earth's oceans, a silent and microscopic transformation is underway—one that threatens to turn the foundational buffet of marine life into the ecological equivalent of a "drive-thru" menu.

New research from the Massachusetts Institute of Technology (MIT), published in Nature Climate Change, warns that as our oceans warm, the very fuel that powers life on Earth is losing its punch. Phytoplankton, the microscopic powerhouses at the base of the food web, are shifting from nutrient-dense "superfoods" to carbohydrate-heavy "fast food."

A Crisis at the Foundation

Phytoplankton are the unsung heroes of our planet. These plant-like organisms perform a Herculean task: they convert sunlight and nutrients into the proteins, lipids, and carbohydrates that sustain everything from the tiniest krill to the blue whale—and ultimately, the billions of humans who rely on the sea for protein.

However, the MIT study suggests that by the year 2100, continued greenhouse gas emissions will have fundamentally rewritten the "nutritional label" of the surface ocean.

The Shift in Numbers:

Protein Decline: In polar regions, protein levels in phytoplankton could plummet by up to 30%.

Macro-Nutrient Swap: The balance of proteins to carbohydrates and lipids is expected to shift by approximately 20%.

Subtropical Collapse: While polar plankton become less nutritious, subtropical regions could see their total populations drop by as much as 50% due to nutrient scarcity.

"We’re moving in the poles toward a sort of fast-food ocean," says lead author Shlomit Sharoni. "The nutritional composition of the surface ocean will look very different by the end of the century."

The Science of "Empty Calories"

Why is this happening? The answer lies in the delicate chemistry of a warming sea.

In the Arctic and Antarctic, melting sea ice is a double-edged sword. As ice vanishes, more sunlight hits the water. While this might seem like a boost for "plants," it actually allows phytoplankton to reduce their "light-harvesting" machinery—which is made of protein.

Simultaneously, warmer surface waters act like a lid, preventing nutrient-rich cold water from rising from the depths. Starved of nitrogen and iron, the plankton can no longer build complex proteins, instead pumping out simpler carbohydrates and fats. They are becoming "energy-dense" but "nutrient-poor"—the very definition of junk food.

Global Cascades and Human Stakes

The implications of a "low-protein" ocean are chilling. If the primary grazers—like krill—are eating "empty calories," they must consume significantly more to survive, or face reproductive failure. This "nutritional bottleneck" then climbs the ladder:

Small Fish: Slower growth and higher mortality.

Apex Predators: Smaller populations of tuna, salmon, and whales.

Humanity: A direct hit to global food security, particularly for coastal nations dependent on fisheries.

A World of Interconnected Shocks

This discovery arrives as the planet is already reeling from climate-driven extremes. Recent data shows that between December 2025 and February 2026, over 2.5 billion people experienced extreme heat influenced by climate change.

From the "risky heat" affecting 81% of vulnerable populations in Africa to the "atmospheric stagnation" trapping deadly pollution over cities like Delhi, the environment is shifting faster than our systems can adapt.

The Invisible Warning

Perhaps most alarming is that this isn't a future projection; it is a present reality. Researchers comparing their models to real-world data from the Arctic have found that protein levels are already declining.

As we look toward 2100, the "Fast Food Ocean" serves as a stark reminder: Climate change isn't just about rising tides or hotter days. It is about the fundamental degradation of the biological fuel that keeps our world alive. The menu is changing—and we may not like what’s being served.