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Advocates Philippines
Consumers Still Paying VAT On Natural Gas; Lawmaker Pushes For Relief
Photo credit: Cong. Ompong Ordanes
Senior Citizens Party-list Representative Rodolfo Ordanes is raising questions over the delay in rolling out a law meant to give Filipino households a break on their electricity bills.
Ordanes filed House Resolution No. 472, urging the House Committee on Energy to investigate why the Value-Added Tax (VAT) exemption on indigenous natural gas—mandated under Republic Act No. 12120—is still not being implemented. The law, signed on January 8, 2025, was designed to lower electricity costs, particularly for senior citizens and low-income families.
“Despite the law and all supporting rules in place, power plants using indigenous natural gas are still being charged 12% VAT,” Ordanes said. He added that households consuming about 200 kWh per month are still paying around ₱42 extra each billing cycle because of the delay.
The Department of Energy issued the Implementing Rules and Regulations on April 8, which took effect two weeks later, while the Bureau of Internal Revenue released Revenue Memorandum Circular No. 11-2025 to support the move. But, according to Ordanes, the VAT exemption is yet to be enforced.
“This delay is an administrative lapse. It’s failing the very Filipino consumers this law is meant to help,” he stressed.
Ordanes said he also sent a formal letter to Energy Secretary Sharon Garin, asking for an update and a clear, time-bound plan to finally implement the tax relief.
The resolution aims to pinpoint what’s holding up the process and to propose policy adjustments to make sure the law fulfills its purpose: easing the burden on electricity consumers.
Ordanes filed House Resolution No. 472, urging the House Committee on Energy to investigate why the Value-Added Tax (VAT) exemption on indigenous natural gas—mandated under Republic Act No. 12120—is still not being implemented. The law, signed on January 8, 2025, was designed to lower electricity costs, particularly for senior citizens and low-income families.
“Despite the law and all supporting rules in place, power plants using indigenous natural gas are still being charged 12% VAT,” Ordanes said. He added that households consuming about 200 kWh per month are still paying around ₱42 extra each billing cycle because of the delay.
The Department of Energy issued the Implementing Rules and Regulations on April 8, which took effect two weeks later, while the Bureau of Internal Revenue released Revenue Memorandum Circular No. 11-2025 to support the move. But, according to Ordanes, the VAT exemption is yet to be enforced.
“This delay is an administrative lapse. It’s failing the very Filipino consumers this law is meant to help,” he stressed.
Ordanes said he also sent a formal letter to Energy Secretary Sharon Garin, asking for an update and a clear, time-bound plan to finally implement the tax relief.
The resolution aims to pinpoint what’s holding up the process and to propose policy adjustments to make sure the law fulfills its purpose: easing the burden on electricity consumers.
Nov 18, 2025
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