Lawmakers target lower power bills amid FIT-All rate hike
‘The quickest way to improve a family’s finances is not always by giving them more — it is by allowing them to keep more of what they have already earned.’
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‘The quickest way to improve a family’s finances is not always by giving them more — it is by allowing them to keep more of what they have already earned.’
Share
Lawmakers in the House of Representatives have introduced separate legislative proposals aimed at lowering electricity costs for Filipino households following the approval of a higher Feed-in Tariff Allowance (FIT-All) rate taking effect this month.
Navotas Representative Toby Tiangco filed House Bill No. 10548, which seeks to exempt households consuming 400 kilowatt-hours (kWh) or less per month from paying value-added tax on their electricity bills.
Tiangco said the measure aims to provide immediate financial relief to low- and middle-income families struggling with rising inflation, allowing them to redirect savings toward food, transportation, and medical supplies.
“Electricity is not a luxury — it is a basic necessity. Every peso a family saves on its electricity bill is another peso they can use to put food on the table, buy medicines, pay for school expenses, or simply make ends meet,” Tiangco said in a statement.
“The quickest way to improve a family’s finances is not always by giving them more — it is by allowing them to keep more of what they have already earned,” he added.
Under the bill, eligible households would automatically receive the VAT exemption on their monthly billing statements without needing to submit applications or documentation to distribution utilities.
The bill comes after energy regulators approved an increase in the FIT-All rate, which is expected to add approximately P134 to the monthly bills of households consuming around 400 kWh starting this August.
In a complementary proposal, House Committee on Ways and Means Chairperson Miro Quimbo filed a separate bill to eliminate VAT on system loss costs and remove VAT charges specifically applied to the FIT-All component.
Quimbo argued that VAT should only apply to actual energy consumption, noting that system losses and regulatory line items do not represent consumed value.
