MANILA — Senator Risa Hontiveros filed a bill seeking to remove value-added tax (VAT) on systems loss charges that are passed on to consumers in their monthly electricity bills.

After filing Senate Bill No. 2076, Hontiveros said Filipino consumers should no longer bear what she described as a “double burden” of paying VAT on top of systems loss charges imposed by electric utilities.

“Itong VAT sa systems loss ay dobleng pasakit at insulto: Pinagbabayad na nga tayo ng systems loss na hindi natin napakinabangan, tapos pagbabayarin pa tayo ng buwis dito. We must immediately end this unfair arrangement, especially now that electricity costs are going up,” Hontiveros said.

She said the measure would amend the National Internal Revenue Code to exclude systems loss charges from VAT-covered transactions. The bill defines systems loss as “the difference between the electrical energy delivered to the distribution system (energy input) and the energy delivered to the residential household consumers (energy output).”

“VAT is a consumption tax on goods and services. Systems loss charges – which represents losses in the distribution and delivery of electricity, are neither goods nor services purchased by power consumers. Hindi dapat pinapatawan ng VAT diyan ang mga pamilyang nagbabayad ng kuryente,” Hontiveros said.

“By removing the VAT on systems loss charges, we are not just making our tax policies more fair and just – we are also providing immediate relief to consumers facing higher electricity bills this summer season,” she added.

Hontiveros said the proposal is the first in a series of planned measures aimed at easing the burden on power consumers, particularly low-income households, amid rising costs of basic goods and services due to the Middle East conflict.

“Maghahain pa tayo ng karagdagang panukalang batas sa Senado para bawasan ang pasanin ng power consumers kada buwan, at kahit papaano ay makatipid ang pamilyang Pilipino ngayong panahon ng krisis,” she said.