A consumer advocacy group is calling on the Department of Energy (DOE) to quickly issue clear rules to enforce a new tax exemption that could help reduce electricity costs for consumers.
CitizenWatch Philippines said the government should ensure the full implementation of Bureau of Internal Revenue (BIR) regulations that remove the 12 percent value-added tax (VAT) on the purchase, sale, and electricity generated from indigenous natural gas.
The VAT exemption is part of the Philippine Natural Gas Industry Development Act, which aims to boost local energy production, improve energy security, and protect consumers from fluctuating global fuel prices.
The group said households and businesses should already be feeling the benefits of the law, and delays in implementation are preventing potential savings from reaching consumers.
According to CitizenWatch co-convenor Kit Belmonte, the DOE plays a key role in guiding energy companies and ensuring the policy is applied correctly and on time.
He said the tax break was designed to make electricity more affordable by lowering costs from locally sourced energy, and that savings should now be reflected in power bills.
CitizenWatch also urged power generators and industry players to immediately adjust pricing and billing to reflect the VAT exemption, in line with the new rules.
The group added that lowering electricity costs is especially important as global fuel prices remain unstable, which continues to affect countries like the Philippines that rely on energy imports.
It said using more local energy sources can help stabilize prices and reduce the impact of international market swings.
