Senator Mark Villar is pushing for the removal of the 12% Value-Added Tax (VAT) on system loss charges in electricity bills, saying consumers should not pay tax on electricity they did not use.
Villar filed Senate Bill No. 2392, which seeks to exempt system loss charges from VAT.
“Simple lang ang prinsipyo natin: kung hindi naman nakonsumo ng consumer ang kuryente, hindi siya dapat singilin ng buwis para rito,” Villar said.
“Mataas na nga ang binabayaran ng ating mga kababayan sa kuryente, may systems loss pa na hindi naman nila kasalanan. Kaya dapat nating alisin agad ang mga dagdag na singil na maaari namang bawasan,” he added.
System loss refers to electricity lost before it reaches consumers. It includes losses from the power distribution system, electricity theft, inaccurate meters, unmetered use and human error.
Allowable system losses can be passed on to consumers and usually make up around 5% to 6% of an electricity bill, according to Villar’s bill.
The proposal comes as the government continues to look for ways to lower electricity costs. The Energy Regulatory Commission has also recommended removing VAT on system loss charges.
Villar said the move is important as Filipino families continue to face high electricity bills.
“Hindi makatarungan na ang consumer na nga ang sumasagot sa system loss, papatawan pa ito ng VAT,” he said.
“We have to make electricity charges fairer and ensure that every peso paid by Filipino families corresponds as much as possible to the electricity and services they actually receive,” he added.
Villar said even small savings on monthly electricity bills can help families with food, transportation, medicine and school expenses.
“Sa bawat bawas sa singil sa kuryente, may dagdag na puwedeng ilaan ang pamilya para sa pagkain, pamasahe, gamot, at edukasyon,” he said.IMT
