Tag: VAT on system loss
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BIR Scraps 12% VAT on Power System Loss Charges
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In a bid to temper rising utility costs for end-users, the Bureau of Internal Revenue (BIR) has officially scrapped the 12% Value-Added Tax (VAT) imposed on allowable system loss charges collected by electric distribution utilities across the Philippines. Under Revenue Memorandum Circular (RMC) No. 97-2026, the tax authority clarified that…
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ERC Seeks VAT Scrap on System Loss to Save Users ₱6B
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The Energy Regulatory Commission (ERC) is moving to scrap the 12% value-added tax (VAT) levied on system loss charges across electricity distribution utilities, a regulatory initiative projected to deliver approximately ₱6 billion in annual savings to Filipino consumers nationwide. The proposed tax relief targets a structural component of retail electricity…