Benise Balaoing

The inauguration of the National Grid Corporation of the Philippines Mariveles-Hermosa-San Jose 500kV transmission line in Barangay Balsik, Hermosa, Bataan on July 12, 2024. The 8,000 MegaWatt (MW)-line is more than capable of transmitting the 2,086MW power from new plants in the area. Niño Jesus Orbeta, PPA pool

The inauguration of the National Grid Corporation of the Philippines Mariveles-Hermosa-San Jose 500kV transmission line in Barangay Balsik, Hermosa, Bataan on July 12, 2024. The 8,000 MegaWatt (MW)-line is more than capable of transmitting the 2,086MW power from new plants in the area.
Niño Jesus Orbeta, PPA pool

Article (news)

ABS-CBN News

MANILA -- The Department of Energy (DOE) on Wednesday said valued-added tax (VAT)-related measures &quot;must be carefully studied,&quot; after earlier saying it was in favor of removing the 12 percent VAT on petroleum products and electricity.The DOE said in a statement that VAT measures should be studied &quot;to ensure that the intended savings are fully and directly passed on to households, businesses, and other end-users.&quot;&quot;Under the current VAT system, electricity is subject to a pass-through tax structure where companies along the power supply chain—from generation to distribution—claim offsets between the VAT they pay on their inputs and the VAT they collect from consumers,&quot; the DOE said.&quot;Removing or adjusting VAT on electricity, therefore requires a thorough evaluation of how these changes will flow through the entire supply chain, and whether the resulting savings will be fully and directly felt by consumers at the household and business level,&quot; it explained.The agency said it is ready to advise economic managers and Congress to help ensure that any policy intervention will truly benefit consumers. A DOE Circular earlier showed that taxes and other duties — including the VAT and excise tax — account for 22 percent of the price of gasoline, and 29 percent for the price of diesel.<div><a href="https://www.abs-cbn.com/news/business/2026/2/11/lawmakers-eye-reducing-vat-on-power-to-reduce-electricity-costs-1632" rel="noopener noreferrer" target="_blank">Lawmakers eye reducing VAT on power to reduce electricity costs</a></div>

The DOE said VAT-related measures "must be carefully studied," after earlier saying that it was in favor of removing the 12 percent VAT on petroleum products and electricity.

The DOE said VAT-related measures "must be carefully studied," after earlier saying that it was in favor of removing the 12 percent VAT on petroleum products and electricity.

DOE says proposed removal of VAT on power needs 'careful study'

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DOE says proposed removal of VAT on power needs 'careful study'

Benise Balaoing,

ABS-CBN News

Published May 06, 2026 04:19 PM PHT

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VAT

value-added tax

petroleum

electricity

kuryente

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