VAT removal on power system losses to ease consumer bills

MANILA — The removal of the value-added tax on system loss charges represents a direct intervention by the Marcos administration to address electricity affordability concerns, according to House Speaker Faustino "Bojie" G. Dy III. The official credited President Ferdinand Marcos Jr. and relevant government agencies for moving swiftly to implement the policy change.

System loss charges are fees that electricity distributors pass on to consumers to recover costs from power lost during transmission and distribution. The 12 percent VAT on these charges added to consumer bills, making the tax removal significant for household and business electricity expenses.

Speaker Dy emphasized that even incremental reductions in power costs matter to Filipino households and businesses managing tight budgets. The move follows growing public pressure on the government to control electricity rates, which have become a major concern for consumers across the country.

The administration's action signals commitment to alleviating the burden of rising energy costs on consumers through targeted policy interventions in the power sector. Further measures to stabilize electricity prices remain under government consideration.