Four of the country’s most influential business groups have thrown their collective support behind a proposed measure that would exempt electricity sales from the value-added tax (VAT), framing it as a decisive step toward reducing one of the Philippines’ most persistent economic burdens: high power costs.
In a rare joint statement, the Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines (ECOP), Philippine Exporters Confederation (PHILEXPORT), and the Trade Union Congress of the Philippines (TUCP) urged lawmakers to pass House Bill 6740, which seeks to remove the 12 percent VAT on electricity.
The measure, authored by TUCP Party-list Representative and House Deputy Speaker Raymond Mendoza, is being championed as a “direct and immediate” form of relief for both households and businesses.
“Electricity is a basic and indispensable input affecting households, small and large enterprises, and key industries,” the groups said, emphasizing that a VAT exemption would translate into meaningful savings for consumers and ease cost pressures on companies battling thin margins.
The coalition stressed that the country’s elevated electricity rates remain a major drag on competitiveness, especially in manufacturing—an industry the government aims to revive as a key pillar for export growth, industrialization, and job creation.
PCCI president Enunina Mangio said that lifting the VAT would “reduce operating costs, help factories expand production, attract new investments, and increase the sector’s contribution to GDP.” She added that addressing power costs “head-on” is non-negotiable if the Philippines wants to lure investors away from regional competitors offering cheaper and more stable energy.
The groups’ endorsement bolsters growing legislative momentum for energy-related reforms aimed at making the Philippines’ electricity market more efficient, more affordable, and more supportive of long-term economic expansion.
