Law on the Rationalization of Fuels for Energy Generation
Congreso Nacional
- Decree: 181-2012
- Published: January 1, 2012
- Issuing body: Congreso Nacional
- Category: Financial & Tax
Summary
This law requires companies importing fuel to pay full taxes, except renewable energy producers and ENEE. It creates a special fund that collects these taxes to compensate ENEE and ensure that costs do not affect electricity prices or consumers.
Considerations
Whereas, in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality, and equity, according to the economic capacity of the taxpayer.
Whereas it is necessary to regulate the exemptions and exceptions granted in the importation of fuels for the generation of electrical energy without promoting inefficiencies in the economy.
Whereas the supply of electrical energy to the National Electrical Energy Company (ENEE) shall incorporate the taxes applied to fuels used in generation, for which reason it shall be imperative to determine the procedures and mechanisms that will be needed in the tax burden so as not to affect the National Electrical Energy Company (ENEE) nor the users of electrical energy.
Whereas in order to stimulate the generation of electrical energy to be commercialized through the National Electrical Energy Company (ENEE), in response to the demand of the different sectors of society, it is necessary to control and rationalize the tax burden on fuels without affecting the financial capacity of the National Electrical Energy Company (ENEE).
Amendments
- Modifies: Law for the Promotion of Production, Competitiveness and Support for Human Development Chapter I Support for Agricultural Production (Amendment) — articles Artículo 41
- Modified by: Diario Oficial La Gaceta No. 35,524 (Amendment)
- Modified by: Diario Oficial La Gaceta No. 34,725 (Amendment)
Articles
The exemptions, exceptions and customs franchises covered by Special Decrees or Laws, International Agreements and contracts approved by the National Congress that grant exemptions from the payment of taxes on the importation or local purchase of petroleum-derived fuels shall be regulated as follows: 1) Natural or legal persons engaged in the production, transformation, refining and importation of fuels must pay one hundred percent (100%) of the tax denominated Contribution for the Care of Social Programs and Conservation of Road Heritage, in accordance with what is established in Article 41 of Decree No. 131-98, containing the Law for the Promotion of Production, Competitiveness and Support for Human Development, reformed by Decree No. 41-2004 dated April 1, 2004. Excluded from this regulation are maquiladora companies operating under the regime provided for in the Law of Free Trade Zones and the Law of Industrial Processing Zones, Renewable Energy Generating Companies, National Electric Energy Company (ENEE), companies that generate electric energy and that are not part of the Interconnected System of the National Electric Energy Company (ENEE)-Útila, Roatán, Guanaja and Puerto Lempira and those covered by International Treaties or Agreements. 2) For electric energy generating companies with Bunker "C", Diesel and Natural Gas, the pertinent regulations established in Chapter VII Articles 23, 24 and 25 of Decree No. 51-2003 dated April 3, 2003, containing the Tax Equity Law published in the Official Gazette "La Gaceta" on April 10, 2003, shall continue to be applied, in all aspects not contrary to this provision. Electric energy generating companies with Bunker "C" and Diesel may pay the tax denominated Contribution for the Care of Social Programs and Conservation of Road Heritage through bonds issued by the State and in their possession or by means of the issuance of a guarantee, bond or promissory note. Guarantees, bonds or promissory notes must be made effective within a maximum period of FORTY-FIVE (45) business days, counted from the date of completion of the fuel discharge at the corresponding port or customs or from the purchase from a local seller.
Authorize the State Secretary in the Ministry of Finance to establish a trust in the Central Bank of Honduras with the resources generated from the payment of the tax denominated Contribution for the Care of Social Programs and Conservation of Road Heritage, by the importation of Bunker "C" and Diesel intended for the generation of electric energy. The resources of the trust must be used exclusively for economic transfers to the National Electric Energy Company (ENEE), so that it may reimburse the value of the tax referred to in the preceding paragraph, upon verification of the quantity of Bunker "C" and Diesel used in the generation of electric energy supplied by private electric energy generating companies to the National Electric Energy Company (ENEE). Once the corresponding Fiscal Year is completed, the surpluses generated by the Trust must be returned to the General Treasury of the Republic.
Amend the second paragraph of Article 23 of the Tax Equity Law, contained in Decree No. 51-2003, dated April 3, 2003, in order to authorize the State Secretary in the Ministry of Finance to execute an Agreement with the National Electric Energy Company (ENEE), to define the amount and mechanisms for transfers of financial resources to the National Electric Energy Company (ENEE) based on the tax denominated Contribution for the Care of Social Programs and Conservation of Road Heritage collected on the importation of Bunker "C" and Diesel, and the financial costs resulting from the application of this Law.
The State Secretary in the Ministry of Finance, in coordination with the State Secretary in the Ministries of Industry and Commerce and the Executive Revenue Office (DEI), must issue the Regulations for the proper application of this Law, within a period of thirty (30) business days.
This Decree shall enter into force from the day of its publication in the Official Gazette La Gaceta. Given in the City of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the Twenty-eighth day of the month of November of Two Thousand Twelve. MAURICIO OLIVA HERRERA PRESIDENT GLADIS AURORA LÓPEZ CALDERÓN SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Power Therefore: Be it Executed. Tegucigalpa, M.D.C., December 3, 2012 PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE MINISTRY OF FINANCE WILFREDO CERRATO RODRÍGUEZ THE STATE SECRETARY IN THE MINISTRIES OF INDUSTRY AND COMMERCE JOSÉ ADONIS LAVAIRE
Related laws
- Acuerdo No. 551-2018 — Reglamento de la Ley de Racionalización a la Exoneración de Combustibles para la Generación de Energía Eléctrica (Decree 551-2018, 2018)
- Decreto Legislativo No. 100-2020 — Ley de exoneración de combustibles para generación de energía eléctrica (Decree 100-2020, 2021)
- Agreement 551-2018 — This regulation controls how electricity generation companies import and pay taxes on fuels like diesel and bunker. It requires them to pay a tax (ACPV) when importing or locally purchasing fuels, which can be paid in cash or government bonds, and ENEE certifies how much fuel is actually used to generate electricity to authorize refunds of paid taxes. (Decree 551-2018, 2018)
- Executive Agreement PCM-020-2022 by which the Solidarity Action Program (PROASOL) is created — This law creates the Solidarity Action Program (PROASOL) as a government entity to help vulnerable groups in the country. It establishes rules for managing vehicles, agricultural schools, human rights, and preventing money laundering in cooperatives, benefiting low-income citizens and rural communities. (Decree 20-2022, 2023)
- Legislative Decree 189-2020 whereby authorization is granted for the holding of five open town council sessions for municipal corporations during the year 2021 and the duration of the health emergency due to COVID-19 — This document contains several Honduran decrees from February 2021. Most importantly, it authorizes municipalities to hold their five open town halls in-person or virtually during 2021 and the COVID-19 emergency, preventing sanctions against mayors. It also declares the agricultural sector as a national priority, creates compensation mechanisms for those affected by COVID-19 vaccines, exempts fines for expired licenses, extends restrictions on constitutional rights, and reforms the free vaccination law. (Decree 189-2020, 2021)