Abalos renews call to scrap VAT on electricity, expand renewable energy
Guimaras Gov. Governor JC Rahman A. Nava, MD and the province’s local officials endorse Abalos’ senatorial bid.
MANILA, Philippines – As Filipino households brace for another increase in electricity bills this April, senatorial candidate and former Interior Secretary Benhur Abalos has renewed his call to abolish the value-added tax (VAT) on electricity and fuel used for power generation.
In a radio interview, Abalos underscored the urgency of repealing what he called “layered and excessive taxation” on electricity, pointing to the Philippines’ persistently high power rates—the second highest in Southeast Asia.
“Due to this increase, it gets harder for ordinary families to keep the lights on,” Abalos said.
“Twenty years ago, when I was a congressman, electricity had no VAT. I opposed it then, and I’m standing by that position now.”
For April, Manila Electric Company (Meralco) customers saw a power rate hike of 72 centavos kilowatt-hour, raising the overall monthly bill by about P145 for households consuming 200 kWh.
Abalos secures the endorsement and full support of Camarines Norte, led by Governor Ricarte “Dong” Padilla.
According to Abalos, the country’s current energy pricing is riddled with taxes at every stage of electricity production and delivery.
“You have 12% VAT on generation, 12% on distribution, 12% on transmission—and then there’s systems loss passed on to consumers. How can any country thrive like this?” he said.
Abalos argued that high electricity costs have discouraged both local industries and foreign investors, forcing manufacturers to relocate to neighboring countries with more affordable power.
“Maraming negosyo na umalis sa atin, pumunta sa ibang lugar dahil mas mura ang kuryente. Eh ang gagaling ng mga Pilipino, ng mga labor natin dito—very skilled,” he emphasized.
“We have world-class Filipino talent, but we’re losing jobs because it’s too expensive to operate here,” he reiterated.
Abalos is proposing the scrapping or significant reduction of these taxes as a way to ease the burden on consumers and revive the country’s competitiveness.
“Ito na lang isipin natin, bakit tayo nagta-tax? Para magkaroon ng pera ang gobyerno, let’s look at it na pwede nating bawasan ito, tanggalin ito. Siguradong dadami ang negosyo.”
He also criticized the Electric Power Industry Reform Act (EPIRA), enacted in 2001, for failing to rein in costs or encourage sufficient competition in the energy sector.
“They’ve reviewed EPIRA recently, but the elephant in the room remains untouched—our power sector is overtaxed,” Abalos said.
If elected to the Senate, Abalos vowed to file a bill eliminating VAT on electricity and slashing taxes on fuel exclusively used for power generation. He said his team is already drafting the proposal.
“This will be one of my first bills. Lowering energy costs will spur more businesses, more jobs, and better lives for Filipinos,” he said.
Abalos during a recent motorcade with Mayor Jenny Barzaga in Dasmariñas, Cavite
Abalos also expressed strong support for renewable energy expansion, citing the country’s untapped potential in wind, wave, and solar energy.
“Right now, we’re only using 18 to 21 percent renewables. In Nordic countries, it’s over 50 percent—and it’s cheaper. We should invest more in renewable energy,” he said.
He pointed out that the Philippines, an archipelagic nation with abundant natural resources, is uniquely positioned to harness clean energy from multiple sources, yet continues to rely heavily on imported fossil fuels.
Abalos argued that scaling up renewable energy is not only an environmental imperative but also an economic strategy.
By investing in local renewable infrastructure, he said the Philippines can reduce its dependence on volatile global fuel markets, stabilize electricity prices, and generate thousands of green jobs in rural and coastal communities.
