Fuentebella files bill on eVAT removal on power sales
07/24/2010 Rep. Arnulfo Fuentebella (NPC, Camarines Sur, 4th District) yesterday filed House Bill 1625 calling for the legislation of an act removing the sale of electricity power from the coverage of the expanded value added tax (eVAT) law by amending certain provisions of the 1997 National Internal Revenue Code as amended by Republic Act 9337, and for other purposes. In his explanatory note, Fuentebella noted that “the cost of electricity in the Philippines is known to be one of the highest in Asia and his bill proposes to mitigate the impact of high electricity prices by removing the sale of electric power from the ambit of the eVAT. RA 9337, also known as the eVAT Law, amended Section 108 of the 1997 National Internal Revenue Code (NIRC) by including “sales of electricity by generation companies, transmission, and distribution companies” as part of the definition of “sale of exchange of services” subject to VAT. Said Act also imposed VAT on fuel and oil products used in the production and generation of electricity. and generation of electricity. Prior to RA 9337, Section 6 of Republic Act No. 9136 (the Epira law) was enacted, with the objective being, among others, to ensure the quality, reliability, security and affordability of the supply of electric power;) to ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market; and to enhance the inflow of private capital and broaden the ownership of base of the power generation, transmission and distribution sectors..... MORE Source: The Daily Tribune URL: http://www.tribuneonline.org/headlines/20100724hed3.html |
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