Is it time to scrap the Value-Added Tax (VAT) on electricity?
Senators Rodante Marcoleta and Bam Aquino have filed the “Kuryenteng Walang VAT” Act, a bill seeking to amend Sections 108 and 109 of the National Internal Revenue Code to remove the 12% VAT currently imposed on electricity charges to consumers.
Senator Marcoleta emphasized the urgency of lowering power costs for ordinary Filipinos, stating, “Pangunahin sa aking mga panukala ang pagsulong ng murang kuryente. Panahon nang ating tugunan ang paghihirap ng ating mga kababayan, at mabigyan sila ng laban sa pang araw-araw.”
The 12% VAT on electricity was first implemented in 2006, up from the previous 10%, as part of the government’s revenue-generating measures.
If passed, the bill is expected to provide immediate relief to millions of Filipino households affected by high electricity rates.