The Department of Energy backed proposals to suspend, reduce or remove value-added tax on electricity amid rising power bills and inflation. The agency said it is ready to provide technical input on energy-sector impacts. This comes as inflation surged to 7.2% in April.
MANILA, Philippines — The Department of Energy issued a statement on Tuesday, May 5, backing proposals to suspend, reduce or remove value-added tax on electricity to ease burdens on households and businesses. "Consistent with its mandate to ensure secure, reliable, and affordable electricity, the DOE supports measures that can ease the burden on Filipino households and businesses," the agency said.
It stressed that any tax measure must be carefully evaluated by the Department of Finance and Congress. The DOE stands ready to provide technical input on energy-sector impacts. This follows inflation surging to 7.2% in April from 4.1% in March, the fastest since March 2023, per government data.
The poorest 30% of households faced 8.5% inflation, driven by food, transport and utility costs. Consumers reported higher, even doubled, power bills from March to April. The DOE also called for long-term reforms like efficient generation, improved grid reliability, stronger competition and responsible energy use.
Meanwhile, the Department of Budget and Management directed agencies to identify savings from unobligated 2025 allotments by May 15 for relief amid the energy emergency.
