Ordanes welcomes BIR enforcement of VAT exemption on natural gas
At A Glance
- Senior Citizens Party-list Rep. Rodolfo "Ompong" Ordanes has hailed the Bureau of Internal Revenue's (BIR) enforcement of the removal of Value Added Tax (VAT) on the sale and purchase of indigenous natural gas and electricity generated from it.
Senior Citizens Party-list Rep. Rodolfo “Ompong” Ordanes (Contributed photo)
Senior Citizens Party-list Rep. Rodolfo “Ompong” Ordanes has hailed the Bureau of Internal Revenue’s (BIR) enforcement of the removal of Value Added Tax (VAT) on the sale and purchase of indigenous natural gas and electricity generated from it.
Through Revenue Regulations No. 002-2026 dated March 5, 2026, the BIR issued the Guidelines in the Availment of Fiscal Incentives provided under Republic Act (RA) No. 12120 or the Philippine Natural Gas Industry Development Act.
Under Section 38 of the law enacted in 2025, the purchase and sale of indigenous natural gas and power generated by power plants using the resource will be exempt from VAT.
Ordanes earlier flagged delays on its implementation and formally urged the Department of Energy (DOE) to cause its immediate implementation that will provide relief to consumers through savings in electricity costs.
He also filed House Resolution (HR) No.472, which directed the House Committee on Energy to investigate the delay in the implementation of the law.
“We welcome the BIR’s move that will lead to the implementation of this pro-consumer measure that will ease electricity costs, which is especially helpful with the current environment when costs are rising due to the tensions in the Middle East,” Ordanes said.
“This will be extra beneficial for the vulnerable sectors such as senior citizens who are most affected by rising utility expenses. Lowering the cost of power has a direct impact on the lives of our elderly,” added the elderly solon.
Ordanes underscored the party-list’s longstanding efforts to push for measures that reduce the cost of essential services.
Senior Citizens Party-list says it has consistently advocated for policies that promote affordable electricity, supported initiatives to cushion the impact of rising energy prices on households, and called for targeted relief mechanisms for senior citizens, including utility subsidies and expanded discounts.
It also urged the swift and effective implementation of the BIR directive to ensure that its benefits are immediately felt by consumers.
“We call on the DOE, other concerned agencies and energy industry players to act with urgency. The faster this is implemented, the sooner Filipino families—especially our senior citizens—can benefit from this, which is the very essence of the laws we create,” Ordanes said.