Congressman Atty. Art Yap of Murang Kuryente Partylist is pushing for the removal of value-added tax (VAT) on electricity, arguing that the current triple taxation system unfairly burdens ordinary Filipino citizens and small businesses.
Cong. Art Yap, former Bohol governor, has submitted a bill at the House of Representatives’ Bills and Index Service this week, calling for the elimination of VAT across electricity generation, transmission, and distribution.
Yap noted that the existing tax structure imposes VAT at three stages: during power generation, transmission, and final distribution to consumers.
This, Yap said, disproportionately affects households and micro, small, and medium enterprises (MSMEs), driving up electricity costs.
“If we want affordable electricity, we need to remove VAT from the equation,” Rep. Yap said in a statement.
The bill estimates that scrapping the VAT could reduce government revenue by approximately P300 billion pesos annually.
The amount would translate into direct savings for Filipinos, bypassing the need for subsidies or political intermediaries, noted Yap, also former Agriculture secretary.
“This is true relief, straight to the people,” he added.
The Murang Kuryente Partylist lawmaker says he needs to rally public support for the measure as it moves through legislative channels.