Gatchalian: EOPT law clears way for VAT relief on system loss
Manila, Sept. 3 -- Electricity consumers may soon get relief from the value-added tax (VAT) imposed on allowable system loss charges without waiting for Congress to pass another tax measure, Senate President Sherwin Gatchalian said Thursday.
Gatchalian said the impending Bureau of Internal Revenue (BIR) circular removing VAT from allowable system loss charges is already supported by Republic Act No. 11976, or the Ease of Paying Taxes (EOPT) Act.
"The impending issuance by the BIR of a circular removing VAT on allowable system loss charges is a welcome development, as this will help ease the financial burden of consumers facing high electricity bills," Gatchalian said in a statement.
Under the EOPT Act, amounts collected for payment to...
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