Bill would cut VAT on power

MANILA, Philippines–To bring power costs down, Sen. Sergio Osmeña III has filed a bill to remove the 12-percent value-added tax (VAT) on electricity.

The measure would amend the National Internal Revenue Code and exempt from VAT the sale of electricity by distribution, generation and transmission companies and electric cooperatives.

“The revenue loss to the government could be offset by the increased purchasing power of households and businesses,” Osmeña said.

In a radio interview on Sunday, Osmeña said removing the VAT on electricity could bring household power costs down by P200 per month.–Christine O. Avendaño