Senior Citizens Party-list Representative Rodolfo “Ompong” Ordanes is demanding answers over the delayed implementation of the VAT exemption on indigenous natural gas, a tax relief measure he says would ease electricity costs for millions of Filipino households, especially senior citizens and low-income consumers.
Ordanes filed House Resolution No. 472 directing the House Committee on Energy to investigate why the Value-Added Tax removal mandated under Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act, has yet to take effect more than 10 months after its enactment.
RA 12120, signed into law on January 8, 2025, categorically exempts the sale of indigenous natural gas and the power generated from it from VAT—a provision meant to help bring down electricity bills nationwide. The Department of Energy released the law’s Implementing Rules and Regulations on April 8, 2025, which took effect on April 23, while the Bureau of Internal Revenue followed with Revenue Memorandum Circular No. 11-2025 to support implementation.
Despite these completed requirements, Ordanes said the VAT exemption remains unimplemented, with power plants using indigenous natural gas still being charged the full 12 percent VAT. As a result, households consuming about 200 kWh monthly continue to pay roughly ₱42 per billing cycle—an unnecessary burden that should have already been lifted.
The lawmaker stressed that the delay defeats the very purpose of the measure, which Congress crafted to provide direct, immediate, and meaningful financial relief to consumers. “This delay constitutes an administrative lapse and a failure to implement a policy specifically designed to give relief to Filipino electricity consumers, including senior citizens,” Ordanes said.
He has also written to Energy Secretary Sharon Garin seeking an update and asking the DOE to clarify the remaining steps needed to fully operationalize the VAT exemption. “We already asked the DOE to provide a written explanation and to give a definite and time-bound action plan for the implementation of the law,” he added.
Through his resolution, Ordanes hopes to identify bureaucratic bottlenecks and push for necessary policy adjustments to ensure the law delivers its intended benefits.
