MANILA – Senator Rodante D. Marcoleta has renewed his call for the immediate passage of measures seeking to remove the 12% Value Added Tax (VAT) on electricity and expand the lifeline rate subsidy program to ease the burden of high power costs on Filipino households and businesses.

At the Commission on Appointments’ deliberations on the ad interim appointment of Energy Secretary Sharon Garin, Marcoleta asked if she would support the removal of VAT on electricity.

“Any measure that will lower electricity rates, we will support…If it removes the taxes, we will support,” Garin replied, noting that while the Department of Finance (DOF) must weigh in, the Department of Energy’s mandate is to ensure affordable power.

Marcoleta stressed that scrapping VAT would directly benefit both consumers and industries, citing that electricity accounts for 70% of production costs in cement plants and 60% in cold storage facilities.

“Kapag bumaba ang kuryente, pag tinanggal natin ang 12% VAT, talagang magiging maligaya po, hindi lang ang ating mga households pati ang ating mga businessmen,” he said.

The senator also proposed to channel funds from doleout programs toward subsidizing electricity bills of households consuming up to 234 kilowatt hours (kWh) monthly.

“Kinwenta ko pa nga ang 2025 budget, P194 billion. Pero hindi naman naku-kuwenta kung kanino napupunta eh… Mas makakatipid tayo kaysa sa ayuda na P194 billion. Dito po halos, baka di po umabot ng P100 billion,” he said.

Marcoleta criticized the current lifeline program, which only covers those consuming 20 kWh per month. “Eh di parang pinagsindi mo lang ng ilaw yun ng isang araw? Yun lang ang libre,” he said.

He added that even Finance Secretary Ralph Recto had expressed openness to reforming the existing subsidy scheme. “All households consuming 234 kWh, ilibre mo na yun. Diretso, walang corruption, walang magpapasikat,” Marcoleta said.

The senator is the principal author of Senate Bill No. 61, which seeks to remove VAT on electricity, and Senate Bill No. 63, which amends the Electric Power Industry Reform Act (EPIRA) to expand lifeline subsidies.