CitizenWatch presses DOE on gas VAT relief

Consumer advocacy group CitizenWatch Philippines is urging the Department of Energy to enforce the value-added tax exemption on electricity generated from indigenous natural gas, saying consumers should already be benefiting from the relief mechanism.

In a statement, the group called on the DOE to issue clear implementing guidelines for the full and timely enforcement of Bureau of Internal Revenue Revenue Regulation No. 002-2026.

The regulation exempts from the 12% VAT the purchase and sale of indigenous gas, aggregated gas, and electricity generated from local gas sources.

CitizenWatch said the exemption stems from the Philippine Natural Gas Industry Development Act, which was enacted early last year to strengthen energy security, promote indigenous energy resources, and help shield consumers from volatile global fuel prices.

The group said timely implementation is critical so households and businesses can fully realize the benefits envisioned under the law.

“This reform was intended to help make electricity rates more manageable for consumers by lowering the cost of locally sourced energy,” said CitizenWatch co-convenor and former Quezon City Rep. Kit Belmonte.

“Now that the tax rules are in place, the priority should be swift and orderly implementation across the sector.

Belmonte said the DOE is in a key position to provide policy clarity, coordinate stakeholders, and establish reasonable timelines to ensure the exemption is properly applied.

“We believe the DOE can play an important leadership role in making sure the intent of the law translates into actual savings for consumers,” he said.

CitizenWatch also urged generation companies and other industry participants to promptly reflect the VAT exemption in their pricing and billing, consistent with applicable rules and certifications.

“If the tax no longer applies, then the corresponding savings should be passed on as soon as practicable,” Belmonte said.

“Consumers have waited for this relief, and they deserve to see its benefits reflected in their power bills.”

The group said the push for lower electricity costs has become more urgent amid renewed volatility in global fuel markets, particularly for import-dependent economies such as the Philippines.

CitizenWatch added that maximizing the use of domestic energy sources is a practical step toward improving price stability and reducing exposure to external shocks.

“At a time of uncertainty in world energy markets, every available measure that can help consumers and strengthen energy resilience should be fully utilized,” Belmonte said.

The appeal places the DOE at the center of efforts to translate a tax policy change into actual savings on electricity bills, especially as energy affordability and security remain major concerns for consumers.