MANILA — The Energy Regulatory Commission (ERC) said it will seek guidance from the Bureau of Internal Revenue (BIR) on how to compute the removal of the value-added tax (VAT) on the system loss charge.
BIR removes VAT on electricity system loss charges
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ERC Chairman Nino Juan said it's not as simple as removing the VAT from the system loss charge in the bill, as electricity supply comes from generators and passes through transmission and distribution utilities before it reaches the consumers.
Juan estimates that the removal of the VAT on the system loss will start in the October consumption of consumers, but this can be seen in the November billing.
“Yung epekto nung pagkawala mangyayari na yan dahil yung kunsumo mo nang Oktubre ay hindi na masasamahan ng vat sa system loss charge," he said.
In the Philippines, there is a lag of one month before consumers pay for their consumed electricity; hence, the reduced system loss charge will only be felt a month from its effectivity in October.
As energy issues pile up, some groups are calling for the resignation of Energy Secretary Sharon Garin.
The Power for People Coalition slammed the administration of President Ferdinand Marcos Jr. for allegedly failing to protect consumers amid the energy crisis.
“Secretary Garin, in particular, was tasked to take charge in responding to the energy crisis. But instead of bending the stick toward protecting consumers from volatilities, we saw an energy chief acting as if a lackey to coal and gas oligarchies. Six months on, and the DOE has not shaped up. There is no reason why consumers should not call for a change in leadership, and for Secretary Garin to step down,” according to Power4People Coalition lead convenor Gerry Arances.