Sen Tolentino files bill to remove VAT on electricity and internet

Senator Francis 'TOL' Tolentino has filed Senate Bill No. 2970 to remove the 12% value-added tax (VAT) on electricity and internet services, aiming to ease financial burdens on households and businesses.

The bill seeks to address high electricity costs that could slow economic growth and contribute to deindustrialization while promoting digital inclusion by making internet services more affordable and reliable.

SB 2970 aims to amend Section 108 of the National Internal Revenue Code of 1997, removing sales of electricity by generation and services of electric utilities from VAT, as well as exempting sales and services of ISPs.

Tolentino emphasized that access to affordable basic services is essential for economic resilience in an increasingly digital world where education and businesses rely heavily on online platforms and remote work arrangements.