In a callback that combines both economic reform and energy strategy, senatorial candidate and former Interior Secretary Benhur Abalos is urging lawmakers to abolish the value-added tax (VAT) on electricity and fuel used in power generation. This initiative aims to significantly improve the Philippines’ competitiveness in the region.
Inquirer.net reported Abalos spoke in a recent radio interview, and warned how high power rates deters both local industries and foreign direct investments. “If we want to attract investors, we have to address one of the biggest cost burdens in doing business here: electricity,” he said in a mix of English and Filipino.
Abalos’s position is echoed by various business groups, including the Philippine Chamber of Commerce and Industry (PCCI), who also called for a VAT exemption on electricity.
Abalos also backed the expansion of renewable energy, noting its long-term cost efficiency and potential to stabilize power supply. “We already have the workforce. What we need now is an energy policy that supports growth,” he said.
The proposed reforms come at a time when the country is trying to court foreign investments and encourage domestic business expansion amid global shifts in supply chains and clean energy adoption.
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Photo Credit: Philippine Inquirer, John Eric Mendoza
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