Sen. Bam to gov’t: Remove VAT on electricity to lower power rates

With consumers facing another electricity rate hike, Sen. Bam Aquino called on government to take the necessary steps to lower prices of power, particularly the removal of value-added tax (VAT) on electric generation, transmission and distribution.

"Kawawa naman ang ating mga kababayan. Hindi pa nga nakakaahon sa taas presyo, dagdag singil naman sa kuryente ang kanilang papasanin," said Sen. Bam,

"Dapat kumilos agad ang gobyerno para maibsan agad itong pahirap sa ating mga kababayan," he added.

Sen. Bam has filed Senate Bill No. 670 seeking to lower power rates by removing VAT from the sale of electricity by all electric companies and cooperatives.

The senator is pushing for the removal of VAT on electric generation, transmission and distribution as the costs of which are ultimately being passed on to already heavily burdened consumers.

Aside from removal of VAT, Sen. Bam also mentioned other recommendations that the government can undertake to lower prices of electricity.

"Kailangan simulan agad ang mga mahahalagang reporma sa power industry para hindi mahirapan ang taumbayan," he said.

Sen. Bam said government must prioritize energy infrastructure projects to help address the country's supply issues, and to remove red tape to enhance competition and encourage more players in power generation.

Source: Senate of the Philippines