BUSINESS
Advocates Philippines
Push For VAT-Free Local Gas To Cut Power Bills
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A consumer advocacy group is urging the government to fast-track the implementation of a tax break on locally sourced natural gas, saying it could help bring down electricity costs for Filipino households and businesses.
In a statement, CitizenWatch Philippines called on the Department of Energy (DOE) to issue clear guidelines on how to enforce the value-added tax (VAT) exemption for electricity generated from indigenous natural gas.
The group said consumers should already be benefiting from the relief under Bureau of Internal Revenue Revenue Regulation No. 002-2026, which removes the 12% VAT on the purchase and sale of indigenous gas, aggregated gas, and electricity produced from local gas sources.
According to CitizenWatch, the exemption is rooted in the Philippine Natural Gas Industry Development Act, a law passed last year to boost energy security, promote the use of domestic resources, and protect consumers from swings in global fuel prices.
“This reform was intended to help make electricity rates more manageable for consumers by lowering the cost of locally sourced energy,” said CitizenWatch co-convenor and former Quezon City representative Kit Belmonte. “Now that the tax rules are in place, the priority should be swift and orderly implementation across the sector.”
Belmonte emphasized that the DOE plays a crucial role in ensuring the policy translates into actual savings, noting that the agency can provide direction, align industry players, and set timelines for proper rollout.
“We believe the DOE can play an important leadership role in making sure the intent of the law translates into actual savings for consumers,” he said.
The group also called on power generators and other industry stakeholders to reflect the VAT exemption in their pricing and billing as soon as possible.
“If the tax no longer applies, then the corresponding savings should be passed on as soon as practicable,” Belmonte said. “Consumers have waited for this relief, and they deserve to see its benefits reflected in their power bills.”
CitizenWatch added that lowering electricity costs has become more urgent as global fuel markets remain volatile, particularly for import-dependent countries like the Philippines. It said maximizing the use of local energy sources could help stabilize prices and reduce exposure to external shocks.
“At a time of uncertainty in world energy markets, every available measure that can help consumers and strengthen energy resilience should be fully utilized,” Belmonte said.
In a statement, CitizenWatch Philippines called on the Department of Energy (DOE) to issue clear guidelines on how to enforce the value-added tax (VAT) exemption for electricity generated from indigenous natural gas.
The group said consumers should already be benefiting from the relief under Bureau of Internal Revenue Revenue Regulation No. 002-2026, which removes the 12% VAT on the purchase and sale of indigenous gas, aggregated gas, and electricity produced from local gas sources.
According to CitizenWatch, the exemption is rooted in the Philippine Natural Gas Industry Development Act, a law passed last year to boost energy security, promote the use of domestic resources, and protect consumers from swings in global fuel prices.
“This reform was intended to help make electricity rates more manageable for consumers by lowering the cost of locally sourced energy,” said CitizenWatch co-convenor and former Quezon City representative Kit Belmonte. “Now that the tax rules are in place, the priority should be swift and orderly implementation across the sector.”
Belmonte emphasized that the DOE plays a crucial role in ensuring the policy translates into actual savings, noting that the agency can provide direction, align industry players, and set timelines for proper rollout.
“We believe the DOE can play an important leadership role in making sure the intent of the law translates into actual savings for consumers,” he said.
The group also called on power generators and other industry stakeholders to reflect the VAT exemption in their pricing and billing as soon as possible.
“If the tax no longer applies, then the corresponding savings should be passed on as soon as practicable,” Belmonte said. “Consumers have waited for this relief, and they deserve to see its benefits reflected in their power bills.”
CitizenWatch added that lowering electricity costs has become more urgent as global fuel markets remain volatile, particularly for import-dependent countries like the Philippines. It said maximizing the use of local energy sources could help stabilize prices and reduce exposure to external shocks.
“At a time of uncertainty in world energy markets, every available measure that can help consumers and strengthen energy resilience should be fully utilized,” Belmonte said.
Apr 23, 2026
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