Senate Bill No. 670: Sale of Electricity by Generation and Distribution of Companies and Electric Cooperatives

The cost of electricity rose once again in February this year, owing to higher power supply agreements as Filipinos braced themselves for the summer months when electric bills normally skyrocket. The Philippines has one of the most expensive electricity costs in Southeast Asia, having the third highest tariffs for residential electricity whereas our neighbors’ electrical distribution is heavily subsidized by their governments.

High power rates are debilitating to the average household or business that already struggle to cover the costs of many other necessities such as water, gas, and of increasing necessity nowadays, internet.

This bill seeks to amend the National Internal Revenue Code of 1997, as amended, by removing Value Added Tax from the sale of electricity, at all stages: generation, transmission, and distribution, by all electric companies and cooperatives.

A tax relief on electricity will result in a significant gain in disposable income for Filipino families, as well as for businesses who benefit from lower operating costs and more profit left for expansion and investment. VAT-exempt electricity will surely light up many more Filipino’s lives.

In view of the foregoing, the passing of this bill is earnestly sought.  


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