Lawmaker to refile bill removing VAT on power prices

House Minority leader and ACT Teachers Representative Rep. France Castro will be refiling a bill in the 19th Congress to remove value-added tax (VAT) on electricity prices as it is ”one of the most viable options  to provide economic relief to the people.”

The statement came after Finance Secretary Carlos Dominguez III said that VAT is not the solution to reducing power prices. 

In a report by the Philippine Daily Inquirer, Castro said they would be refiling House Bill No 249 in the 19th Congress, adding that they need to stop the “over-taxation of electricity consumers.” 

She said that the 12% VAT on electricity is “another burden on the already overtaxed shoulders of our people, especially those whose incomes are barely enough to cover their basic needs.” 

Outgoing Energy Regulatory Commission (ERC) chairperson Agnes Devanadera also asked to remove the “double VAT” imposed on power rates. Dominguez, however, denied the claim and said that “VAT is imposed separately in each stage of production” in the electric power industry. 

However, Castro claimed that VAT is “imposed not only in the generation of consumed power but also on system loss charges,” which makes “the Filipino people suffer twice over.” 

Earlier this month, House Deputy Speaker and Cagayan De Oro City Rep. Rufus Rodriguez announced that he will also refile a bill that will remove excise tax on diesel, gasoline, and other fuel products for four years to help mitigate rising fuel prices. 

The 19th Congress will begin on June 30.