Tolentino to file bill to allow WFH employees to deduct electricity cost from income tax

MANILA, Philippines — The additional electricity cost paid for by employees working from home amid the restrictions triggered by the pandemic should be deducted from their tax payments, Senator Francis Tolentino said.

During Monday’s Senate energy committee hearing into the so-called “bill shock” suffered by power consumers, Tolentino said he would file a bill with committee chairman Senator Sherwin Gatchalian seeking to amend the National Internal Revenue Code to “provide a reasonable deduction on the gross income of any taxpayer who has incurred additional electricity consumption while working at home.”

”Ito pong ginastos ng ating mga nagtatrabaho sa bahay, pwedeng ikarga bilang deductible expense sa pagbabayad ng buwis dahil po nabawasan ang gastos ng kanilang pinapasukan,” Tolentino said.

(The expenses of those working from home can be considered as deductible expenses since the companies they are working from are saving up on costs.)

“Hindi na sila nagtatrabaho doon sa opisina nila, hindi kumo-konsumo ng aircon at kuryente. Dahil nagtatrabaho sila sa bahay, nadagdagan ang kanilang gastusin sa kuryente,” he added.

(The employees are no longer working in the office, hence, they are no longer consuming electricity. But because they are now working from home, their expenses have increased.)

“Because he was able to produce something for the government office or for a private employer, he is entitled to some tax relief,” the senator further added.

According to Manila Electric Company (Meralco) chief executive officer and president Ray Espinosa, power consumption increased by 30 percent during the quarantine period with consumers using their appliances more often.

In March, the entire Luzon was placed under the enhanced community quarantine, which limited the movement of people and prompted companies to utilize alternative work arrangements.