By Lane Afable, News Editor
Senator Risa Hontiveros on Monday filed a bill that will remove the value-added tax (VAT) on systems loss charges currently being passed on to consumers’ monthly electricity bills.
After filing Senate Bill No. 2076, Hontiveros said that Pinoy consumers should no longer be made to carry the “double burden” of paying for VAT on top of the “already absurd” systems loss charges passed on by electric utilities.
“Itong VAT sa systems loss ay dobleng pasakit at insulto: Pinagbabayad na nga tayo ng systems loss na hindi natin napakinabangan, tapos pagbabayarin pa tayo ng buwis dito. We must immediately end this unfair arrangement, especially now that electricity costs are going up,” Hontiveros said.
The senator explained that her bill will amend the National Internal Revenue Code (NIRC) to exclude systems loss charges from transactions subject to VAT. Systems loss under the bill refers to “the difference between the electrical energy delivered to the distribution system (energy input) and the energy delivered to the residential household consumers (energy output).”
“VAT is a consumption tax on goods and services. Systems loss charges – which represents losses in the distribution and delivery of electricity, are neither goods nor services purchased by power consumers. Hindi dapat pinapatawan ng VAT diyan ang mga pamilyang nagbabayad ng kuryente,” Hontiveros said.
“By removing the VAT on systems loss charges, we are not just making our tax policies more fair and just – we are also providing immediate relief to consumers facing higher electricity bills this summer season,” Hontiveros said.
Hontiveros said that the bill is only the first of her planned package of legislative measures to provide assistance to power consumers, especially low-income households, amid rising costs of basic necessities due to the Middle East conflict.
“Maghahain pa tayo ng karagdagang panukalang batas sa Senado para bawasan ang pasanin ng power consumers kada buwan, at kahit papaano ay makatipid ang pamilyang Pilipino ngayong panahon ng krisis,” Hontiveros concluded.
