“I commend Energy Regulatory Commission (ERC) chairman Agnes Devanadera for her advice to the next administration to remove the value-added tax (VAT) on power generation and maintain it only for power distribution,” senator Imee Marcos said.
Senator Marcos added that Devanadera has been clarifying the solution for lowering the cost of electricity for a long time.
“It echoed one of my proposals in Senate Bill 219, which was filed in my first month as a senator in July 2019, which seeks to exempt not only the sale of electricity from VAT but the sale or import. of machines and equipment that will be used directly to generate, transmit, and distribute electricity, ”said senator Marcos.
The removal of VAT on electricity bills will not only benefit the home and commercial end-user.
It will also make the Philippines more attractive to foreign investors who refuse the country’s high electricity wages, which are likely to be the highest in Asia.
“We need to reduce the inevitable rise in the cost of power generation that depends on oil and gas, as world prices and the supply of these commodities will continue to fluctuate due to the Russia-Ukraine war,” the senator said. Marcos.
The transition teams of the current government and the presumptive president-elect Ferdinand Marcos Jr. ERC chairman Agnes Devanadera should be seriously considered as the next chief of the Department of Energy after senator Marcos.
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