NATIONAL
Advocates Philippines
VAT-Free Gas Seen To Ease Power Bills-Seniors Group
Photo credit: House of Representatives of the Philippines
A party-list group representing elderly Filipinos has welcomed a new tax move that could help bring down electricity costs, especially at a time when global tensions are pushing energy prices higher.
The Senior Citizens Party-list expressed support for the Bureau of Internal Revenue’s (BIR) decision to enforce the removal of Value Added Tax (VAT) on indigenous natural gas and electricity generated from it.
The move is contained in Revenue Regulations No. 002-2026, issued on March 5, which lays out the guidelines for availing fiscal incentives under Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act.
Under Section 38 of the law passed in 2025, both the sale and purchase of locally sourced natural gas, as well as electricity produced from it, are exempt from VAT.
Rep. Rodolfo Ordanes had earlier raised concerns over delays in rolling out the policy. He also filed House Resolution 472, urging the House Committee on Energy to investigate the lag in implementation and push for immediate action from the Department of Energy (DOE).
“We welcome the BIR’s move that will lead to the implementation of this pro-consumer measure that will ease electricity costs, which is especially helpful with the current environment when costs are rising due to the tensions in the Middle East,” Rep. Ordanes said.
“This will be extra beneficial for the vulnerable sectors such as senior citizens who are most affected by rising utility expenses. Lowering the cost of power has a direct impact on the lives of our elderly,” he added.
The group emphasized that lowering electricity costs has long been part of its advocacy, particularly for sectors that are more sensitive to rising utility expenses. It has backed policies promoting affordable energy, supported measures to cushion households from price increases, and pushed for targeted assistance such as subsidies and expanded discounts for senior citizens.
The party-list is now calling for faster coordination among the DOE, other government agencies, and industry players to ensure the directive is fully implemented without delay.
“We call on the DOE, other concerned agencies and energy industry players to act with urgency. The faster this is implemented, the sooner Filipino families—especially our senior citizens—can benefit from this, which is the very essence of the laws we create,” Ordanes said.
The Senior Citizens Party-list expressed support for the Bureau of Internal Revenue’s (BIR) decision to enforce the removal of Value Added Tax (VAT) on indigenous natural gas and electricity generated from it.
The move is contained in Revenue Regulations No. 002-2026, issued on March 5, which lays out the guidelines for availing fiscal incentives under Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act.
Under Section 38 of the law passed in 2025, both the sale and purchase of locally sourced natural gas, as well as electricity produced from it, are exempt from VAT.
Rep. Rodolfo Ordanes had earlier raised concerns over delays in rolling out the policy. He also filed House Resolution 472, urging the House Committee on Energy to investigate the lag in implementation and push for immediate action from the Department of Energy (DOE).
“We welcome the BIR’s move that will lead to the implementation of this pro-consumer measure that will ease electricity costs, which is especially helpful with the current environment when costs are rising due to the tensions in the Middle East,” Rep. Ordanes said.
“This will be extra beneficial for the vulnerable sectors such as senior citizens who are most affected by rising utility expenses. Lowering the cost of power has a direct impact on the lives of our elderly,” he added.
The group emphasized that lowering electricity costs has long been part of its advocacy, particularly for sectors that are more sensitive to rising utility expenses. It has backed policies promoting affordable energy, supported measures to cushion households from price increases, and pushed for targeted assistance such as subsidies and expanded discounts for senior citizens.
The party-list is now calling for faster coordination among the DOE, other government agencies, and industry players to ensure the directive is fully implemented without delay.
“We call on the DOE, other concerned agencies and energy industry players to act with urgency. The faster this is implemented, the sooner Filipino families—especially our senior citizens—can benefit from this, which is the very essence of the laws we create,” Ordanes said.
Mar 19, 2026
We are dedicated storytellers with a passion for bringing your brand to life. Our services range from news and media features to brand promotion and collaborations.
Interested? Visit our
Contact Us page for more information. To learn more about what we offer, check out our latest article on services and opportunities.
