Senator Francis Escudero reiterated his call for the exemption of electricity rate from value-added tax (VAT) as he suggested that improving the collection efficiency should be prioritized over plans to raise taxes amid soaring prices of basic and prime commodities.

Escudero has filed Senate Bill No. 2301 that seeks to exempt electricity sales from the 12-percent VAT as per the amended National Internal Revenue Code that is up for discussion before the Committee on Ways and Means.

Under the Escudero measure, the following transactions shall also be exempt from VAT: sale of electricity by generation, transmission and distribution companies and electric cooperatives; and services of franchise grantees of electric utilities.

“This bill seeks to address the high electricity cost by exempting electricity sales from VAT. By granting relief, the government can lower the operating costs of industries and businesses, temper inflation and increase disposable household income, while generating revenue windfall through increased economic activity and consumption,” he said in a statement on Monday.

Escudero also said the planned adjustment in motor vehicle road users’ tax won’t receive his backing.

“Hindi man makatulong na pababain ang presyo ng mga bilihin, baka naman pwede huwag na nating dagdagan ang pasanin muna ni Juan dela Cruz (Even if it doesn’t help to reduce the price of goods, maybe we should not add to the burdens of Juan dela Cruz),” he added. (PNA)