- The ERC proposed removing VAT from system loss charges to lower electricity bills for consumers.
- It wants system loss treated as a government-mandated pass-through cost, not part of power firms’ VATable gross receipts.
- ERC chairman said charging VAT on electricity never delivered to consumers is unfair, and the agency has already discussed the issue with the BIR.
- Public consultations are set for Aug. 2, with written comments accepted until Aug. 18.
- The proposal follows Marcos Jr.’s call to cut system loss charges, though some industry players say the plan needs careful study.
Source: manilatimes.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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