The Bureau of Internal Revenue confirmed before legislators that the National Grid Corporation of the Philippines has been religiously paying the 3-percent franchise tax mandated by law.
BIR Commissioner lawyer Romeo Lumagui Jr. made the statement before the House of Representatives committee on ways and means chaired by Albay Rep. Joey Salceda.
He also assured the public the strict implementation of Energy Regulatory Commission Resolution 10 which prohibits NGCP from passing the franchise tax to consumers.
“NGCP has been religiously paying its franchise tax to BIR,” Lumagui said.
From 2018, ERC Chairperson Monalisa Dimalanta reported that NGCP paid between P1.3 billion to P1.5 billion franchise tax every year.
From 2016 to 2022, NGCP paid a total of P21 billion in franchise tax, Dimalanta added.
Meanwhile, a lawmaker called on Congress to look into the legal accountabilities of former ERC Commissioners who previously approved NGCP’s petition to pass on the 3-percent franchise tax to consumers.
“What are the possible legal accountability on the part of the body who approved the resolution authorizing NGCP to pass on the 3 percent franchise tax?” APEC party-List Rep. Sergio Dagooc said.
Dagooc maintained that NGCP cannot be blamed for this move, saying it acted based on the ERC resolution issued in 2011 that was only suspended in 2023.
Salceda, for his part, pushed for a refund mechanism for the P204.3 billion in alleged excess revenues of NGCP.
From 2016 to 2020, Salceda said ERC-approved revenues were P183.5 billion, while NGCP’s actual revenues totaled P387.8 billion, resulting in P204.3 billion in excess.
Salceda argued this underscores the urgent need for legislative action and direct these excess revenues in refunds.
