Senator Risa Hontiveros – Photo courtesy of Senator Risa Hontiveros/Facebook.
Aligned with President Ferdinand ‘Bongbong’ Marcos Jr. (PBBM)’s call for all government offices to take steps in easing the impact of the prevailing energy crisis on the public, the Department of Energy (DOE) has expressed support for the removal of the value-added tax (VAT) on electricity
Highlighting the need to ease the burden of high power prices among consumers, Energy secretary Sharon Garin told the media in a press briefing that “(they) have been consistent in (their) opinion on VAT removals and anything that would help lower the price of electricity.”
“This also includes the revisiting of the VAT or any taxes that are set in our electric bill,” she added.
However, the DOE chief disclosed that the decision on whether any tax measure shall be suspended, removed or imposed is under the mandate of the Department of Finance (DOF), so she cited that the removal of the electricity VAT is for the [DOF] to assess and review,” she clarified.
“(W)e leave it also to their decision on how this will overall impact the economy and on the basic services of the government,” she enthused.
Prior to this, lawmakers from both Houses of Congress have proposed to remove the VAT on energy to bring down the cost of electricity, often said to be the highest in Asia.
Yesterday, Senator Risa Hontiveros filed Senate Bill 2076 that seeks to remove the VAT on systems loss charges that are currently being passed on to electricity consumers’ bills.
According Hontiveros, under her proposed measure, Filipino consumers should no longer be made to carry the “double burden” of paying for VAT on top of the “already absurd” systems loss charges passed on by electric utilities.
“We must immediately end this unfair arrangement, especially now that electricity costs are going up,” she stressed.