14.2 The same section defines incentives as rewards and recognition, monetary or
otherwise, that will be provided to individuals, private organizations and entities,
obliged enterprises, and PROs, including NGOs, that have undertaken outstanding
and innovative projects, technologies, processes, and techniques or activities in
the reuse, recycling, and reduction of solid waste.
14.3 Anent thereto, the Act also enumerated five incentives, as follows:
14.3.1 Fiscal Incentives
14.3.1.1. Tax Incentives
14.3.1.2. Extended Producer Responsibility expenses shall be considered as
necessary deductible expenses
14.3.1.3. Tax and Duty Exemption of Donations, Legacies and Gift
14.3.2 Non-Fiscal Incentives
14.3.3 Financial Assistance Program
14.3.4 Extension of Grants to LGUs
14.3.5 Incentives to Host LGUs
14.4 Relative thereto, Rule XVI of DAO No. 2001-31 dated December 20, 2001,
otherwise known as the Implementing Rules and Regulations of RA 9003,
clarified the abovementioned incentives available to local government units
(LGUs), enterprises, the private sectors, and civil society, in developing and
implementing an effective and efficient solid waste management system. For
instance, fiscal incentives can take the form of taxes and interest rates, while non-
fiscal incentives can involve simplified bureaucratic procedures and reduced paper
requirements.
14.5 For fiscal incentives, a Committee on Fiscal Incentives (CFI) for solid waste
management projects and initiatives may be established, which will serve a fixed
3-year term. This can be chaired by the Department of Finance and co-chaired by
the Department of Trade and Industry. The committee will be responsible for
providing the technical basis for the fiscal incentives, designs, proposals, and
reviews and for setting the required standards and processes to avail of the said
incentives. The procedures for the availment of the incentives shall follow
Executive Order (EO) No. 226, otherwise known as The Omnibus Investments
Code of 1987.
14.6 In light of the above, the fiscal incentives mentioned in RA 9003 do not encourage
the granting of additional personnel benefits to implementing individuals within
the LGU, but rather giving rewards and recognition to constituents of the
community, may it be individuals or organizations, including the Municipal
Government, who or which has undertaken the initiative to introduce pioneering
or groundbreaking programs or techniques contributing to the improvement and
efficiency of solid waste management, especially in the area of reuse, recycling,
and reduction of solid waste in the locality.
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