President Ferdinand "Bongbong" Marcos Jr. has asked the House Committee on Ways and Means chairman to study the possibility of removing the 12 percent value-added tax (VAT) component of public utilities, especially electricity.

This was revealed by the committee chairman, Albay 2nd district Rep. Joey Salceda during an impromptu briefing with House reporters Thursday, Nov. 10.

"Actually mayroon din po ako talagang (Actually I really have) instruction from the President to study that. And I'm not releasing it because I made a proposal to the Office of the President (OP)," Salceda said.

"Basta pinatignan po nila sakin kung pwede pong tanggalan ng VAT ang utilities, lalung lalo na ang kuryente (What they want is for me to study if we can remove VAT from utilities especially electricity)," he noted.

Pressed for more details, the economist-solon revealed to reporters the possible trade-off: "The Committee on Ways and Means will seriously study removing the VAT on utilities provided that we will increase the franchise tax ."

Unlike VAT, franchise tax cannot be passed on consumers as per the National Internal Revenue Code or NIRC.

Salceda promised: "We diligently study everything, every proposal which may provide relief to our consumers."

The Bicolano said they may need to consult with the Department of Finance (DOF) on the matter.

"Definitely we will try to avoid any revenue negative actions by the Committee on Ways and Means and second, we will try to avoid as much as possible any credit downgrade arising from higher deficits and higher debt. We are very conscious of that," he said.

"Definitely may instruction ang Presidente (the President gave instruction). We will study it carefully," reiterated Salceda.

"As soon as the relevant bills are due for discussion, we will present our findings. We are working out the committee schedule for that. PBBM gave this instruction as we have been corresponding on economic issues, and as is my usual role in the administration, I give and am sought to give my advice," he said.