Filipino workers and students may soon see relief from high utility costs as Senator Francis Tolentino filed Senate Bill 2970 to exempt electricity and internet services from the 12 percent value-added tax.
“As more educational institutions transition to online platforms and businesses adopt flexible work arrangements, affordable internet access becomes even more vital,” Tolentino said in his bill.
“The important role of electricity and the internet in our daily lives, particularly in education and remote work cannot be overstated,” he added.
The senator introduced the bill on Thursday, citing the country’s high electricity costs, which are among the steepest in Southeast Asia.
He warned these costs could stifle economic growth and potentially lead to deindustrialization.
“By eliminating VAT on electricity and internet sales and services, the government would alleviate financial pressures on consumers and businesses alike, fostering a more inclusive and robust digital landscape,” he said.
The proposed legislation seeks to amend Section 108 of the National Internal Revenue Code of 1997.
It aims to exempt sales of electricity by generation, transmission, and distribution companies from VAT, and not just covers services provided by electric utilities but internet service providers as well.
“This bill aims to alleviate the rising costs of essential commodities and improve the overall quality of life for Filipinos,” Tolentino said.