SEN. ESCUDERO CALLS TO SCRAP 12% VAT ON POWER BILLS

Senator Francis Escudero on Thursday, January 8, called for electricity sales to be exempt from the 12-percent VAT to ease costs for households and businesses.

He emphasized that his Senate Bill No. 496, pending before the Committees on Ways and Means and Energy, targets only the power sector and does not cut VAT across the board.

Escudero said the measure is fiscally responsible, helping reduce electricity costs, temper inflation, and increase disposable income without threatening government revenues.

The exemption would cover electricity sales by generation, transmission, and distribution companies, electric cooperatives, and franchise grantees of electric utilities.

He described the proposal as a “surgical” measure to address one of the economy’s most pressing pain points while maintaining fiscal stability.

Source: PhilNews24 | January 9, 2026