Tolentino files bill to exempt electricity, internet from VAT

Senator Francis Tolentino has introduced Senate Bill 2970, proposing to exempt electricity and internet services from the 12% value-added tax (VAT) to ease financial burdens on consumers and businesses.

Tolentino highlighted that the Philippines has some of the highest electricity costs in the region, which could hinder economic development and potentially lead to deindustrialization.

He also argued that removing VAT on internet services would promote digital inclusion, enabling more Filipinos to engage in the digital economy.

The proposed legislation seeks to amend the National Internal Revenue Code of 1997 to remove VAT on electricity sales and services provided by electric utilities.

Senator Tolentino emphasized the critical role of electricity and internet in education and remote work, especially with the increasing shift to online platforms and flexible work arrangements.