The Department of Energy (DOE) has expressed its support for the removal of the value-added tax (VAT) on electricity. This move aims to ease the financial burden on consumers dealing with soaring power prices.
Energy Secretary Sharon Garin made the announcement during a media briefing, reiterating the department's consistent stance on VAT removals to help lower electricity costs.
We have been consistent in our opinion on VAT removals and anything that would help lower the price of electricity.
Sharon Garin, Energy Secretary
Garin also noted that the review of VAT and other taxes on electricity bills falls under the jurisdiction of the Department of Finance. She emphasized that the finance department must evaluate the overall economic impact of such tax changes.
We leave it also to their decision on how this will overall impact the economy and on the basic services of the government.
Sharon Garin, Energy Secretary
Senators have also joined the call for tax reforms. Recently, Senator Risa Hontiveros filed Senate Bill 2076, which aims to eliminate VAT on systems loss charges currently passed on to consumers.
The Philippines has one of the highest electricity costs in Asia, prompting lawmakers to seek measures to alleviate the financial strain on households.