All service contractors may avail of the incentives or privileges under P.D. 1174 amending P.D. 972, otherwise known as “The Coal Development Act of 1976.”

  • Cost reimbursement of operating expenses up to 90% of gross proceeds from production with carry forward
    of unrecovered cost;
  • Special allowance of up to 40% of the net proceeds;
  • Exemption from all taxes except income tax;
  • Exemption from payment of tariff duties and compensating tax on the importation of machinery, equipment,
    spare parts and all materials for coal operations;
  • Entry of alien technical and specialized personnel; and,
  • Right of ingress to and egress from the COC area.