Senate bill seeks VAT exemption on electricity sales

Senate bill seeks VAT exemption on electricity sales

Senator Paolo Benigno “Bam” Aquino IV on Wednesday filed a bill seeking to lower power rates by removing value added tax (VAT) from all sales by electric companies and cooperatives.

Senate Bill no. 670 seeks a tax relief on electricity sales including generation, transmission, and distribution. It looks to amend Section 10 (A) (II) and 109 (1) of the National Internal Revenue Code of the Republic Act 9937 (RA 9937).

“A tax relief on electricity will result in significant savings for Filipino families as well as lower operating costs for businesses, from small restaurants and retail stores to large factories,” Senator Aquino said.

“We’ve been complaining about our expensive electricity for too long. Something must be done to bring down prices.”

He is also looking to exempt the sale and importation in the power generation, transmission and distribution’s machinery and equipment, including spare parts.

The senator added that the high rates add to the burden of average Filipino families already struggling to pay for basic necessities.

Electricity rates in the Philippines is one of the most expensive in Southeast Asia, with household rates being the third highest.

In 2015, Senator Sergio Osmena III also filed a VAT exemption on electricity sales by distribution, generation and transmission companies and electric cooperatives through Senate Bill 2714.

Comments

comments




%d bloggers like this: