- The Philippine government could lose about P10 billion in annual revenue if the 12% VAT on electricity system loss charges is removed.
- The DOF says system loss charges are treated under ERC Resolution No. 26 as government-mandated pass-through costs, not gross sales, so they are VAT-exempt.
- The change will take effect once the Bureau of Internal Revenue confirms it.
- Distribution utilities will then have 60 days to revise consumer billing formats.
Source: newsinfo.inquirer.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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