The Energy Regulatory Commission (ERC) is in talks with the Bureau of Internal Revenue (BIR) to remove the 12% value added tax (VAT) on power to ease the plight of consumers burdened with soaring costs of basic goods.
ERC officials made the disclosure during a recent Senate hearing upon the inquiry of Senator Risa Hontiveros, who said system losses and subsidies should not be subjected to VAT.
“Hangga’t maaari ay alisin natin ang mga hindi makatwirang sinisingil sa ating mga kababayan. Tulad sa mahihirap nating consumers na dapat ay hindi na natin pinapapasan sa kanila,” she said.
Former ERC Chairperson and Chief Executive Officer Agnes Devanadera previously sought the removal of the 12% VAT imposed on the generation charge, but it was opposed by then-Finance Secretary Carlos Dominguez III.