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Hontiveros seeks VAT exemption on low electricity use

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Electricity bills may soon get a small reprieve for some Filipino households as a new measure seeks to reduce monthly charges.

Senator Risa Hontiveros has filed Senate Bill No. 2093, or the proposed “Kuryente Relief Act of 2026,” which aims to exempt the value-added tax (VAT) from electricity bills of households consuming 150 kilowatt-hours (kWh) or less per month.

The measure targets so-called “energy poor” consumers and is expected to generate monthly savings of about P250 to P300 for qualified households.

Hontiveros said the proposal seeks to broaden government support beyond low-income families.

“Makakatipid ang maraming pamilya kung tatanggalin natin ang VAT sa bill ng mga kabahayang ‘di naman kalakihan ang gamit sa kuryente,” Hontiveros said.

Under the bill, distribution utilities and electric cooperatives will automatically reflect the VAT exemption in monthly billing statements without requiring consumers to apply.

It also directs the Energy Regulatory Commission (ERC) to ensure that the reduction will not be offset through added charges such as distribution wheeling fees or other pass-through costs.

The proposal comes amid continued public concern over rising electricity rates, which have affected both low- and middle-income households.

Hontiveros earlier filed another measure, Senate Bill No. 2076, seeking to remove VAT on system loss charges in electricity bills.

Lawmakers from both chambers have also called for a review of electricity pricing policies following complaints over high power costs.


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