Senators push review of power taxes amid rising bills

Senators on Wednesday called for a review of taxes on electricity, saying these add to the burden of Filipino consumers amid concerns over rising power bills.

During the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee hearing, lawmakers directed the Energy Regulatory Commission (ERC) to study the impact of removing taxes on electricity.

“We’ll request ERC to study the tax component,” Sherwin Gatchalian said, noting that aside from the value-added tax, consumers also shoulder other levies such as local franchise taxes and energy taxes.

ERC chairperson Francis Saturnino Juan said the commission has written to the Bureau of Internal Revenue to discuss the issue.

Senate Deputy Minority Leader Rodante Marcoleta reiterated his proposal to remove the 12 percent VAT on electricity bills, which Juan said he would not oppose.

“Mayroon po akong panukala na tanggalin na ang 12% tax on electricity,” Marcoleta said. “Pati system loss may tax. Dito lang sa atin nangyari na pati ba naman yung bagay na wala, nata-tax?”

Marcoleta said these charges contribute to higher electricity rates.

“Kaya tumataas ang singil dahil sa mga ganitong contributory factors,” he said.

Imee Marcos also raised the possibility of reducing the VAT on electricity.

“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?” she said.