DOE to review taxes on energy sector

DOE-Transmission lines

The Department of Energy (DOE) is looking to assess the taxes imposed in the country’s energy sector to determine if it contributes to higher power costs in the country. 

Energy Secretary Raphael Lotilla said in a Makati Business Club session that the government would also need to look into possible impacts on power costs should it impose carbon tax. 

“This is what we are trying to look at —the entire taxation system in the energy sector. So after making it (power) unsubsidized, we also have value-added tax (VAT), we also have excise tax, the VAT on excise tax, the VAT on system losses, and so many elements that add to the cost. Then there’s proposal on carbon tax,” Lotilla said. 

DOE is looking into the proposal on carbon tax “more deliberately and more systematically” to help determine the possible effects of its imposition on the energy sector. 

Lotilla said that they need to have a better analysis of the taxes being imposed in the sector. 

While DOE is looking for ways to make power available and affordable to consumers, Lotilla said that taxes are a big source of revenue for the government to fund various projects not limited to energy.