‘Overtaxation’ of electricity consumers decried
A militant solon lamented the alleged overtaxation of consumers of electricity.
ACT Teachers party-list Rep. France Castro reacted strongly against outgoing Department of Finance Secretary Carlos Dominguez by saying that consumers are not double taxed by the value added tax in electricity.
“Paanong hindi double taxed ay may VAT ang generation charge, may VAT ang transmission, may VAT din ang distribution pati nga systems loss of electricity may VAT. Tapos sasabihin ni Dominguez di daw nadodoble ang VAT kung tutuusin di nga lang doble ang nasisingil ng gobyerno gamit ang VAT sa kuryente sa atin,” Castro said.
“Sa framework kasi ni Sec. Dominguez gusto nya buwisan lahat ng ginagamit natin kulang na lang ay pati hangin buwisan nya,” she added.
This overtaxation of consumers of electricity must be stopped by the incoming administration.
The Makabayban bloc vowed to refile House Bill 249 in the 19th Congress to exempt electricity from VAT.
“As it is, VAT on electricity is another burden on the already over-taxed shoulders of our people, especially those whose incomes are barely enough to cover their basic needs. In time of unabated price increases of fuel, food, and other commodities, it is the duty of Congress to provide economic relief to the Filipino people. The removal of VAT on electricity is one of the most viable options for Congress to immediately act on,” Castro said.
To date the Philippines has one of the highest cost of electricity in Southeast Asia. For instance, the 2011 addition of 5.8 centavos per kilowatt-hour (kWh) on generation charges plus the 12 percent VAT imposed raised the price of electricity at P9.55 per kWh.
For a household consuming 200kWh of electricity a month, the VAT is estimated at P191.00, an amount quite substantial to the average working Filipino.
“What is worse, VAT is not only imposed on the generation of consumed power but also on system loss charges, thus, clearly making the Filipino people suffer twice over,” she also said.
While it may have helped the government’s fiscal position, it is imperative that Congress still act on the removal of VAT on electricity as it is the fastest and most direct form of economic relief for all Filipino households and businesses.
“ Whatever revenue losses to be suffered by government will definitely be offset by the increased purchasing power of all households as well as cheaper production costs, redounding to a more robust and equitable economy,” the lady solon also said.
