By Benjamin Cuaresma
MANILA — Sen. Risa Hontiveros on Monday, May 4, filed Senate Bill No. 2076 seeking to remove the 12% value-added tax on system loss charges passed on to consumers in monthly electricity bills.
“Itong VAT sa systems loss ay dobleng pasakit at insulto: Pinagbabayad na nga tayo ng systems loss na hindi natin napakinabangan, tapos pagbabayarin pa tayo ng buwis dito,” Hontiveros said.
“We must immediately end this unfair arrangement, especially now that electricity costs are going up,” she added.
SB 2076 seeks to amend the National Internal Revenue Code to exclude system loss charges from transactions subject to VAT.
Under the bill, system loss refers to “the difference between the electrical energy delivered to the distribution system (energy input) and the energy delivered to residential consumers (energy output).”
Hontiveros argued that VAT is a consumption tax on goods and services, while system loss charges “are neither goods nor services purchased by consumers.
“Hindi dapat pinapatawan ng VAT diyan ang mga pamilyang nagbabayad ng kuryente,” she said.
The senator said removing VAT on system loss charges would provide “immediate relief” to consumers facing higher power bills this summer.
She noted the bill is the first of a planned package of measures to reduce the burden on power consumers, particularly low-income households, amid global tensions driving up fuel and utility costs.
“Maghahain pa tayo ng karagdagang panukalang batas… para bawasan ang pasanin ng power consumers kada buwan,” Hontiveros said.
Several lawmakers in both chambers have called for a review of electricity subsidies and pass-through charges following complaints of rising bills.
The Senate PROTECT Committee is also holding hearings on electricity pricing, system loss caps, and distribution-related charges.
ia/xf
