The Department of Energy (DOE) on Tuesday threw its support behind legislative proposals to eliminate the value-added tax (VAT) on electricity, acknowledging the move could slash power rates for consumers while cautioning that the policy demands a thorough economic assessment.
Energy Secretary Sharon Garin stated that the agency is fully aligned with initiatives aimed at easing the financial burden on consumers who are currently grappling with escalating monthly electricity bills.
“Suportado ng DOE ang lahat ng layunin na naglalayong mapababa ang presyo ng kuryente sa bansa, kabilang dito ang pag-aaral na bawasan o alisin ang VAT sa kuryente,” she said in a social media post.
While the energy chief recognized that a VAT exemption would immediately alleviate household electricity expenses, she emphasized that the authority to make such a structural change lies outside the jurisdiction of the DOE.
“Nasa economic managers at Kongreso ito dahil may mas malawak na epekto sa ekonomiya,” she said.
In an independent statement, the DOE pointed out that any potential tax cuts must be carefully balanced against national revenue losses, given that VAT collections are vital for financing public services and infrastructure.
“The Department stands ready to provide technical inputs on the energy-sector impact of any proposed measure, in support of a whole-of-government approach that protects both consumer welfare and fiscal sustainability,” it said.
Furthermore, the agency underscored that cutting taxes is not a standalone solution to the country’s high electricity costs.
The DOE stressed that sustainable relief relies heavily on broader, long-term industry reforms, which include expanding the national energy supply, securing grid stability, and fostering robust market competition.