Biz, labor groups back bill to scrap 12% VAT on electricity

Major business and labor organizations in the Philippines have voiced their support for a bill that aims to eliminate the 12 percent value-added tax (VAT) on electricity sales.

The Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines, Philippine Exporters Confederation, and the Trade Union Congress of the Philippines (TUCP) are backing House Bill 6740.

Proponents argue that scrapping the VAT on electricity will alleviate financial burdens on households and enhance the nation's industrial competitiveness.

According to Deputy Speaker Raymond Mendoza, the author of the bill, high electricity costs have consistently strained Filipino families and hampered business productivity.

The organizations believe that removing the VAT will reduce operational costs for manufacturers, who already face some of the highest power rates in Southeast Asia.

PCCI president Enunina Mangio stated that the measure is crucial for attracting more investors by making the Philippines a more competitive market.