DOE OPEN TO VAT RELIEF AMID RISING ELECTRICITY COSTS

The Department of Energy (DOE) supported proposals to suspend, reduce, or remove value-added tax on electricity as rising power bills and inflation increase pressure on consumers.

It said it is ready to provide technical input on the impact of such measures, while noting that tax policy decisions rest with the Department of Finance and Congress.

The statement came as inflation jumped to 7.2% in April, driven by higher food, transport, and household costs, with the poorest households experiencing sharper increases.

Electricity bills have also surged, with many consumers reporting higher charges from March to April due to generation, transmission, and tax costs.

The DOE said affordability should also be addressed through long-term reforms such as improved generation, grid reliability, and competition.

Source: PhilNews24 | May 6, 2026

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