A bill filed in the House of Representatives is pushing to reduce the value-added tax (VAT) on electricity to six percent from the current 12 percent to help lower power costs for consumers and businesses.

House Bill No. 6984 proposes amending the National Internal Revenue Code to halve the VAT passed on by distribution utilities to electricity users. According to 1TAHANAN Party-list Rep. Nathan Oducado, lowering the VAT on power is timely as high electricity rates continue to burden Filipino households and discourage investments.

If enacted, the measure would require the Energy Regulatory Commission (ERC), the Department of Energy (DOE), and the Department of Finance (DOF) to submit quarterly reports to Congress, with a comprehensive assessment to be conducted two years after implementation to determine its effectiveness.

Estimates show the government may lose more than ₱93 billion in revenue annually, but consumers are expected to save around ₱130 per month, or ₱1,560 per year, on their electricity bills.