DOE open to lifting VAT on electricity 05.05.2026

The Department of Energy (DOE), led by Secretary Sharon Garin, announced on Tuesday its support for proposals to reduce or eliminate the value-added tax (VAT) on electricity to lower costs for Filipinos. While the DOE emphasizes that tax policy decisions rest with Congress and economic managers, it remains committed to long-term energy reforms, including renewable energy expansion and grid reliability. Simultaneously, Senator Risa Hontiveros introduced Senate Bill 2093, the Kuryente Relief Act, which seeks to exempt residential consumers using 150 kilowatt-hours or less from VAT, potentially saving households P250 to P300 monthly. Additionally, Senator Imee Marcos has advocated for amending the Electric Power Industry Reform Act to address concerns regarding inflated pass-on charges and system loss calculations by utility providers like Meralco.















