Brind.
  1. Ferdinand Marcos, in his capacity as Senate leader, is now overseeing the committee tasked with examining power company bills, including those related to Meralco.
  2. President Marcos is seeking to prohibit Meralco from passing system loss charges while the Senate prioritizes bills to boost workers' pay.

BIR Removes VAT on System Loss Charges for Power Consumers

1 report, 1 independent Updated Thu 00:00
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 97-2026, removing the 12 percent VAT on allowable system loss charges. This followed an ERC Resolution No. 26, which declared these charges, within the ERC cap, are no longer part of the gross sales of power utilities. The ruling took effect immediately.

From philstar.com

Why it matters

Some supportBrind's analysis of the reports

The change was prompted by President Ferdinand Marcos Jr.'s demand during his State of the Nation Address. The amendment to the 2001 Electric Power Industry Reform Act aims to prohibit system loss charges and their corresponding VAT for consumers. Arthur Yap estimated this change could amount to P20 per kilo for consumers.

President Ferdinand Marcos Jr. is seeking to prohibit Meralco from passing system loss charges while the Senate prioritizes bills to boost workers' pay.

From philstar.com

Who's involved

  • Bureau of Internal RevenueIssued the ruling removing VAT on allowable system loss charges.
  • MarcosRaised the issue in his State of the Nation Address, leading to the action.
  • MeralcoIs a power utility subject to the tax law and regulatory oversight of the BIR.
  • Arthur YapWelcomed the directives and estimated the consumer savings.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • MeralcoSpeculative

    Meralco could see a reduction in operational costs due to the removal of VAT on system loss charges.

  • Bureau of Internal RevenueSpeculative

    The Bureau of Internal Revenue might change its operational mandate by issuing the RMC.

Keep exploring

Part of

President Marcos is seeking to prohibit Meralco from passing system loss charges while the Senate prioritizes bills to boost workers' pay.

Also in this story

All 3 developments

Within Ferdinand Marcos, in his capacity as Senate leader, is now overseeing the committee tasked with examining power company bills, including those related to Meralco.

The entities involved

Coverage

Newest first; wire copies grouped