SENATE MAJORITY Leader Francis Tolentino has filed a measure aiming to remove the 12 value-added tax (VAT) on electricity and internet services to ease the financial burdens on Filipino households and businesses.
In a news release, Tolentino said he filed Senate Bill No. 2970 to lower the cost of electricity in the Philippines, which ranks among the most expensive in the region.
He warned that high electricity costs could slow economic growth and even contribute to deindustrialization.
Meanwhile, Tolentino said removing VAT on internet services would enhance digital inclusion and strengthen the country’s participation in the global digital economy.
"As more schools shift to online learning and businesses continue remote work arrangements, reliable and affordable electricity and internet services have become even more essential," he said.
"Removing VAT on these services will help ensure greater accessibility and economic resilience for Filipinos."
SB 2970, which was filed on Thursday, seeks to amend Section 108 of the National Internal Revenue Code of 1997, explicitly exempting the following from VAT: sales of electricity by generation, transmission, and distribution companies; services of franchise grantees of electric utilities; and sales and services of internet service providers.
"This initiative is not just about affordability --it’s about ensuring that all Filipinos have access to the basic services they need to thrive in an increasingly digital world," Tolentino said.
“The bill is a response to rising living costs and aims to provide much-needed financial relief for consumers.” (Wilnard Bacelonia)
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