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Alyansa Para sa Pagbabago senatorial aspirant Benjamin "Benhur" Abalos Jr. says the newly-signed Republic Act (RA) No.12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will address a major barrier to foreign direct investment (FDI): high electricity costs.

This, as the former Department of the Interior and Local Government (DILG) secretary joined the list of personalities who lauded President Marcos' recent enactment of the measure.

“With the Philippines having the highest electricity rates in Southeast Asia, RA No.12066 will address a major deterrent for locators and investors by providing them additional deductions to offset the high electricity costs in the country,” said Abalos, who was widely credited for Mandaluyong City's progress during his tenure as mayor.

He noted that in the Philippines, the average cost of electricity is USD 0.18 or PHP 11.00 per kilowatt-hour (kWh), compared to USD 0.10 in Indonesia, USD 0.08 in Vietnam, and USD 0.03 in Malaysia.

Abalos, who topped a performance survey among Cabinet officials, said having reliable electricity is critical in the government's bid to attract more investments to create more jobs and improve the economy.

“A key question is, why is electricity so expensive, and why do some areas still lack reliable power supply? Reliable electricity is a necessity for our people and a critical factor for investment,” Abalos said.

He recalled that when he was DILG secretary, the National Grid Corporation of the Philippines (NGCP) came to him with a major problem. They said they couldn’t install transmission lines in some parts of the country because of permit delays, some taking up to 10 years.

Advocating for reliable supply of electricity in the countryside, Abalos created a committee to tackle this, and within six months, they were able assist NGCP in addressing the delays and setting up about 20 transmission lines in Mindanao.

Abalos also commended the efforts of Congress, particularly House Speaker Martin Romualdez and Senate President Francis Escudero, for prioritizing CREATE MORE.

RA No.12066 also address bureaucratic red tape as it introduces provisions that will expedite VAT refunds and streamline documentation requirements to facilitate release of VAT refund claims, according to Abalos.

"What is important is the law sets a clear timeline for the application and appeal process for VAT refunds," Abalos said.

The CREATE MORE Act imposes a 20-day deadline for the Fiscal Incentives Review Board (FIRB) and Investment Promotion Agencies (IPAs) to respond to applications for tax incentives, improving processing efficiency.