Amid mounting public concern over rising electricity bills, several senators on Wednesday called for a review of taxes and government-imposed charges on power consumption, saying these add to the financial strain on Filipino households and businesses.
During the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee hearing, lawmakers urged the Energy Regulatory Commission (ERC) to assess the impact of reducing or removing tax components embedded in electricity bills.
Senator Sherwin Gatchalian said consumers shoulder not only the 12% value-added tax (VAT), but also other levies such as local franchise taxes and energy-related charges.
“We’ll request ERC to study the tax component,” Gatchalian said.
ERC Chairperson and Chief Executive Officer Atty. Francis Saturnino Juan said the commission has already reached out to the Bureau of Internal Revenue (BIR) to discuss concerns over electricity taxation.
Senate Deputy Minority Leader Rodante Marcoleta renewed his proposal to remove the 12% VAT on electricity bills, noting that additional charges such as taxes on system loss further increase consumer costs.
“Kaya tumataas ang singil dahil sa mga ganitong contributory factors,” Marcoleta said.
Senator Imee Marcos likewise floated the possibility of lowering VAT on power consumption, saying it could provide immediate relief to consumers.
“It’s not helping our problem. Kung malinaw naman at nakahiwalay ang VAT sa unbundled bill, bakit hindi na lang ito bawasan para maibsan ang singil?” Marcos said.
The renewed calls come as electricity affordability remains a major concern for households and enterprises, with lawmakers seeking measures that could temper utility costs while ensuring the sustainability of the power sector.