TOL VIEWS

Living in a highly digitalized world, our need for electricity and internet services has become nearly as basic as food and shelter. However, the rising costs of these utilities in the Philippines weighs down heavily on the average earning Filipino.

Electricity price for households in the Philippines in December 2024 was at ₱11.96 per kilowatt hour, while monthly internet costs for year 2024 was at an average of ₱2,000. Imagine what else is left of a minimum wage earner’s take home pay if electricity and internet costs are at these heights.

My premise for filing Senate Bill 2970 is exactly the facts I mentioned above. The bill aims to boost the affordability of electricity and internet in the country by exempting service providers from the 12 percent Value Added Tax (VAT). By doing so, the government can help lower operating expenses for businesses and consequently reduce the burden on consumers.

Reduction in electricity and internet costs would now allow households to increase their budget for other items such as transportation, education, healthcare, and other similar needs of family members. This relief is expected to also boost business investments, create more jobs, expand operations, increase competitiveness and efficiency, thus benefiting the overall economy.

Senate Bill 2970 likewise aims to promote digital inclusion. Internet connectivity is central to modern life. The pandemic chapters in our history clearly emphasized the importance of digital connectivity in communication, education, business, governance, and the many other aspects of our life as a nation.

By reducing internet costs, we can bridge the digital divide and promote greater access to digital resources for more Filipinos. More affordable internet services will also enable more people to participate in the digital economy as online sellers or freelance workers, providing them with added opportunities to augment income and provide for their families’ needs.

The Philippines’ e-commerce landscape has significantly grown in the past years with more and people engaging in online retail. Reduction in internet costs will definitely boost e-commerce by enabling more people to gain access to online products and services.

The vital role of electricity and the internet in national development cannot be overstated. Ensuring sustainable national development requires sustained and seamless connection to the digital world. The nation’s potential for greater growth remains high, but we also remain limited and challenged by rising costs of goods and poor efficiency in services. We hope to contribute to addressing these challenges with the passage of Senate Bill 2970.