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Advocates Philippines
Senators Push Review Of Power Taxes
Photo credit: Meralco
Several senators are calling for a closer look at taxes imposed on electricity, warning that these charges continue to drive up power bills and place added strain on Filipino households.
During a hearing of the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee, lawmakers urged the Energy Regulatory Commission (ERC) to examine how taxes contribute to overall electricity costs—and whether removing or reducing them could ease the burden on consumers.
Sen. Sherwin Gatchalian said the review is necessary, pointing out that consumers pay more than just the standard value-added tax (VAT) on their electricity bills.
“We’ll request ERC to study the tax component,” Gatchalian said, noting that aside from VAT, other charges such as local franchise taxes and energy-related levies are also passed on to consumers.
For its part, the ERC confirmed that it has already initiated discussions with the Bureau of Internal Revenue (BIR) to further examine the issue. ERC Chairperson and CEO Francis Saturnino Juan said the agency is coordinating with tax authorities as part of the review process.
Senate Deputy Minority Leader Rodante Marcoleta renewed his proposal to remove the 12% VAT on electricity altogether, arguing that it unnecessarily inflates monthly bills.
“Mayroon po akong panukala na tanggalin na ang 12% tax on electricity,” Marcoleta said. “Pati system loss may tax. Dito lang sa atin nangyari na pati ba naman yung bagay na wala, nata-tax?”
He added that these government-imposed charges are among the key factors behind rising electricity rates.
“Kaya tumataas ang singil dahil sa mga ganitong contributory factors,” he said.
Meanwhile, Sen. Imee Marcos also floated the idea of reducing VAT, saying it could provide immediate relief to consumers if adjusted.
“It’s not helping our problem. Kung malinaw naman at nakahiwalay ang VAT sa unbundled bill, bakit hindi na lang ito bawasan para maibsan ang singil?” she said.
The renewed push to revisit electricity taxes comes amid growing public concern over power costs, with many consumers taking to social media to question rising bills and the various charges included in them.
Lawmakers said a thorough review could help determine whether policy changes are needed to make electricity more affordable, especially for households already grappling with higher living expenses.
During a hearing of the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee, lawmakers urged the Energy Regulatory Commission (ERC) to examine how taxes contribute to overall electricity costs—and whether removing or reducing them could ease the burden on consumers.
Sen. Sherwin Gatchalian said the review is necessary, pointing out that consumers pay more than just the standard value-added tax (VAT) on their electricity bills.
“We’ll request ERC to study the tax component,” Gatchalian said, noting that aside from VAT, other charges such as local franchise taxes and energy-related levies are also passed on to consumers.
For its part, the ERC confirmed that it has already initiated discussions with the Bureau of Internal Revenue (BIR) to further examine the issue. ERC Chairperson and CEO Francis Saturnino Juan said the agency is coordinating with tax authorities as part of the review process.
Senate Deputy Minority Leader Rodante Marcoleta renewed his proposal to remove the 12% VAT on electricity altogether, arguing that it unnecessarily inflates monthly bills.
“Mayroon po akong panukala na tanggalin na ang 12% tax on electricity,” Marcoleta said. “Pati system loss may tax. Dito lang sa atin nangyari na pati ba naman yung bagay na wala, nata-tax?”
He added that these government-imposed charges are among the key factors behind rising electricity rates.
“Kaya tumataas ang singil dahil sa mga ganitong contributory factors,” he said.
Meanwhile, Sen. Imee Marcos also floated the idea of reducing VAT, saying it could provide immediate relief to consumers if adjusted.
“It’s not helping our problem. Kung malinaw naman at nakahiwalay ang VAT sa unbundled bill, bakit hindi na lang ito bawasan para maibsan ang singil?” she said.
The renewed push to revisit electricity taxes comes amid growing public concern over power costs, with many consumers taking to social media to question rising bills and the various charges included in them.
Lawmakers said a thorough review could help determine whether policy changes are needed to make electricity more affordable, especially for households already grappling with higher living expenses.
Apr 29, 2026
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