The Department of Energy is throwing its weight behind measures that could reduce electricity costs for consumers, including stripping value-added tax from power bills — though Energy Secretary Sharon Garin acknowledged Monday that her department has no authority to make that happen.
Garin said the DOE’s position is straightforward: anything that drives down electricity prices falls within the spirit of its mandate.
“Anything that would lower the price of electricity, the DOE supports, including revisiting VAT or any taxes na kinakarga po sa electric bill natin,” she said at a media briefing.
The push to reconsider electricity-related taxes comes as fuel prices climb in the wake of heightened tensions in the Middle East, prompting calls from various sectors for VAT relief on power consumption.
But the energy chief was clear that endorsing the idea is as far as the DOE can go. The actual determination of whether to suspend, scrap, or adjust any tax measure falls squarely under the Department of Finance.
“However, that decision, whether on the suspension, removal, or imposition of any tax measure, is under the mandate of the Department of Finance,” Garin said.
She added that the broader fiscal and economic implications of such a move are properly assessed by the DOF, not her department. “So this is for the Department of Finance to assess and review, kaya we leave it to their decision kung ano yung overall impact nito on the economy and on the basic services of the government,” Garin said.
Delivering secure and affordable electricity remains the DOE’s stated mandate — a standard Garin cited as the basis for the department’s support of any cost-reduction measure, regardless of which agency ultimately holds the pen.
