PSALM remits P9 billion dividends to Treasury

MANILA, Philippines — The Power Sector Assets and Liabilities Management (PSALM) Corp. has remitted nearly P9 billion in dividends to the Bureau of Treasury that will be utilized for various economic programs.

In a statement, the Department of Finance (DOF) said it received P8.96 billion from PSALM as part of the latter’s mandated dividends contribution for 2024.

The amount is PSALM’s highest dividend remitted to date. The latest remittance represents 75 percent of PSALM’s net income last year.

In April 2024, the DOF increased the dividend rate remittance of government-owned and controlled corporations (GOCCs) from their net earnings to 75 percent from the minimum of 50 percent as the agency looked for ways to increase revenues without new taxes.

The Dividends Law of 1994 mandates all GOCCs to declare and remit at least 50 percent of their annual earnings, as cash, stock or property dividends to the Treasury.

Finance Secretary Ralph Recto said PSALM’s remittance reflects its strong financial performance and its dedication to good fiscal management.

“Every successful privatization done properly means less burden on the taxpayers. And every power plant handed to capable hands means brighter homes, powered schools and new life to our rural communities,” Recto said.

PSALM plays a crucial role in transforming the country’s energy sector into a modern, inclusive and competitive industry.

Its mandate includes the orderly sale and privatization of National Power Corp. generation assets and real estate, the management of independent power producer contracts and the liquidation of Napocor’s financial obligations in an optimal manner.

GOCC dividends are sources of non-tax revenues that fund infrastructure and other social and economic programs of the government.