Even as the Department of Finance has warned that scrapping the 12-percent value-added tax on system loss charge would result in about P10 billion in revenue losses every year, a senator is pushing to remove as well the VAT on residential electricity, to bring relief to households.
At the recent Development Budget Coordination Committee briefing, Senator Paolo Benigno ‘Bam’ A. Aquino said the proposal could provide consumers with greater relief alongside efforts to remove system loss charges from their electricity bills.
‘If we remove the VAT from the electricity of residential [users]-not the businesses, or factories, but just residential, this could mean a bigger drop in the electricity bill of our citizens,’ Aquino told government economic managers.