By Brian Campued
Any measure aimed at suspending, reducing, or removing the value-added tax (VAT) on goods and services must first be carefully studied by economic managers, specifically the Department of Finance (DOF), and Congress, the Department of Energy (DOE) stressed.
In a statement Tuesday, the DOE expressed its support for proposals to slash or remove VAT on electricity, as it may help reduce power costs for consumers amid the recent spike in electricity rates.
“Consistent with its mandate to ensure secure, reliable, and affordable electricity, the DOE supports measures that can ease the burden on Filipino households and businesses,” it said.
While it respects that tax policy falls under the economic team, the department said it is ready to provide technical input on the energy-sector impact of any proposed measure.
However, the DOE clarified that the benefit of lower electricity costs needs to be balanced with the government’s fiscal position, ensuring that such move will not affect the delivery of essential public services.
The department said electricity affordability should also be pursued through sustained energy-sector reforms, including “efficient generation, improved grid reliability, stronger competition and responsible energy use.”
“Proposals must be weighed alongside long-term measures that ensure stable, sustainable, and affordable power for consumers,” it stated.
Meanwhile, Sen. Risa Hontiveros filed a bill seeking to remove the VAT from the monthly electricity bills of households consuming 150 kilowatt-hour (kWh) or less.
Under Senate Bill No. 2093, or the proposed “Kuryente Relief Act,” around P250 to P300 may be removed from the monthly bills of “energy poor” consumers.
“Dapat lang na palawakin ng pamahalaan ang tulong nito mula low income hanggang middle income households na kadalasan ay di naabot ng subsidy programs,” Hontiveros said.
“Makakatipid ang maraming pamilya kung tatanggalin natin ang VAT sa bill ng mga kabahayang di naman kalakihan ang gamit sa kuryente,” she added.
The senator said that SB 2093 complements the earlier measure she filed, SB 2076, which seeks to remove VAT on system loss charges on electric bills.
-av
