Palace: Thorough study needed in bid to exempt electricity from VAT

INQUIRER FILE PHOTO

MANILA, Philippines – Communications Secretary Herminio Coloma on Thursday said the proposal to exempt electricity from value-added tax (VAT) would need thorough study.

“VAT is a major source of (funding for the) government that’s why (that proposal) requires further study by the BIR (Bureau of Internal Revenue),” Coloma said during a press briefing at Malacañang Palace.

In an earlier statement, the Secretary said they would have to wait for the response of the BIR and the Department of Finance on the proposal.

Several lawmakers have proposed to scrap the 12-percent VAT on electricity to address the high power rates in the country.

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