(Ali Vicoy/ File photo/ MANILA BULLETIN)

High electricity rates and steadily rising fuel prices have been a perennial headache for Filipinos. 

For this reason, Camarines Sur 2nd district Rep. LRay Villafuerte filed in the current 19th Congress House Bill (HB) No.8231, or the proposed Act lowering the cost of electricity and petroleum products. 

The Bicolano sought the price-cut proposal as oil companies raised last Aug.15 the pump prices of gasoline and diesel for the sixth time in six weeks amid rising global demand and continuous supply cuts by Saudi Arabia, the world’s biggest oil exporter. 

Under the bill, Villafuerte seeks to amend various sections of the National Internal Revenue Code (NIRC) of 1997 by imposing a temporary suspension for three years of, or a 50 percent cut on, certain tax payments, to lower electricity rates and the retail prices of fuel products. 

“This proposed measure seeks to reduce the excise tax on petroleum products and coal by 50 percent, suspend the imposition of applicable duties on their importation, and exempt the system loss charge in the sale of electricity from the value-added tax (VAT), for a period of three years,” explained the veteran solon. 

The former Camarines sur governor further said he filed HB No.8231 “in a bid for the 19th Congress to mitigate the effects of the imposition of VAT and the increased excise taxes on petroleum products and coal that are too much of a burden on the consumers and businesses as we recover from the effects of Covid-19 and elevated inflation". 

HB No.8231 proposes to amend Section 109 of the NIRC by exempting from VAT payment the system loss charge in the sale of electricity for a period of three years from the date of effectivity of the act. 

It also seeks to amend Section 148 of the NIRC by reducing by 50 percent for three years  the excise tax payments on petroleum products. 

Moreover, it aims to cut by half, also for three years, the excise taxes on coal, and to suspend for the same period the collection of applicable duties on imports of coal and petroleum products.