MERALCO

Bam: Lower the price of electricity

A senator has submitted a measure seeking to lower power rates by removing Value Added Tax (TAX) from the sale of electricity by all electric companies and cooperatives.

In his Senate Bill No. 670, Sen. Bam Aquino wants to make VAT-exempt the sale of electricity at all stages — from generation, transmission, and distribution — to lessen the expenses of Filipino families.

 “A tax relief on electricity will result in significant savings for Filipino families as well as lower operating costs for businesses, from small restaurants and retail stores to large factories,” Sen. Bam said.

 The measure seeks to amend Section 108 (A) (II) and 109 (1) of the National Internal Revenue Code, as amended by Republic Act No. 9337, to cover sale, transmission and distribution of electricity from VAT-exempted transactions.

 Among them are sales of electricity by generation, transmission and distribution companies and electric cooperatives and services of franchise grantees or electric utilities.

 The senator is also eyeing to exempt from VAT the sale or importation of machineries and equipment, including spare parts, to be directly used by the buyer or importer in the generation, transmission and distribution of electricity

 “We’ve been complaining about our expensive electricity for too long. Something must be done to bring down prices,” Sen. Bam said.

 The Philippines has one of the most expensive electricity costs in Southeast Asia, having the third highest tariffs for residential electricity whereas our neighbors’ electrical distribution is heavily subsidized by their governments.

 The lawmaker added that more than hindering foreign investment, high power rates add burden to average Filipino families that are already struggling to pay for other necessities such as water, food and gas.

 

Help Restore Power to Samar, Leyte — Sen. Bam to Electric Coops

Senator Bam Aquino calls on electric firms and cooperatives around the country, including MERALCO, to send humanitarian mission teams to help restore power to Leyte and Samar, saying relief “can’t be carried out blindly” by humanitarian aid missions.

“Hanggang sa walang kuryente sa Samar at Leyte, parang bulag ‘yung mga relief teams na pumupunta doon,” Sen. Aquino says.
“Kailangang maibalik ang kuryente para maibalik rin ang telecommunication lines at maibalik ang contact sa ating mga kababayang talagang nangangailangan ng tulong.”
The return of electric power, the lawmaker points out, will likewise expedite the provision of medical services and will help local businesses restore their services.
“So much of Leyte and Samar were completely cut off from the rest of the country at the onslaught of Yolanda. We now need everyone’s help to ensure that nobody gets left behind in relief efforts.”
On Saturday evening, President Benigno Aquino III delivered a statement during the NDRRMC briefing and said that the restoration of power and communication lines were among the national government’s priorities, aside from extending relief assistance in affected areas.
Sen. Bam Aquino reiterates, “Until power is restored to Leyte and Samar, it will be impossible for people to get back up on their feet. The need is urgent, and we appeal to our fellow Filipinos to make this happen for the sake of our kababayan in those areas.”
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