THE DAVAO Consumer Movement calls for immediate and concrete action to lower electricity rates, as consumers continue to bear the weight of rising power costs on top of an already high cost of living.
We welcome the ongoing efforts of lawmakers to review the imposition of the value-added tax (VAT) and other charges on electricity.
Recent discussions in the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee — including proposals raised by Senator Sherwin Gatchalian to review not only VAT but also franchise, local franchise, and energy taxes, as well as the call of Senator Rodante Marcoleta to remove the 12% VAT — reflect a growing recognition that government-imposed charges have contributed to high electricity bills. We also note the support expressed by Sharon Garin for measures aimed at reducing electricity prices, including studying the removal or reduction of VAT on power.
These are important steps, but they must now lead to decisive results.
One that we see must be prioritized is the removal of the 12% VAT on electricity. At a time when families are forced to stretch limited incomes and small enterprises struggle to stay afloat, removing this tax can provide immediate and meaningful relief.
However, the burden on consumers goes beyond VAT. We call on lawmakers and energy regulators to conduct a full and transparent review of all pass-through charges embedded in electricity bills. These include the universal charge, FIT-All, GEA-All, lifeline subsidies, and obligations related to NPC debts, among others. Consumers must not be made to shoulder costs that are not directly tied to the actual delivery of electricity to their homes.
We also support the call of Sen. Marcoleta to stop passing on to consumers non-technical system losses, which include electricity theft and administrative inefficiencies. These are costs that consumers did not create and should not be forced to pay, especially when they are further compounded by taxes.
Every day, consumers are forced to make difficult choices just to keep up with basic expenses. High electricity rates are not an abstract issue; they directly affect food on the table, the viability of small businesses, and the overall quality of life of our communities.
We urge lawmakers to move beyond deliberations. We call on them to swiftly enact measures to remove VAT on electricity, initiate a comprehensive review of all charges passed on to consumers, and ensure that inefficiencies within the system are no longer borne by the public.
Ryan Amper
Convenor
Davao Consumer Movement
0905-5634083
