Local and foreign business groups are calling on Malacañang and lawmakers to prioritize the twin power bills pending before Congress to ensure its passage.
In a statement, the Semiconductors and Electronics Industry in the Philippines (SEIPI) has urged the government to reduce the royalties from indigenous energy sources, such as the natural gas of Malampaya, so foreign investors will not flee to other countries that have more competitive power rates.
In light of this, SEIPI President Ernie Santiago is pushing for the certification of Senate Bills 3147 and 3148 as priority bills to ensure immediate passage.
The local semiconductors and electronics industry account for about two-thirds of total Philippine exports.
Philippine Chamber of Commerce and Industry (PCCI) President Edgardo Lacson said that they are also supporting the redirection of government share of royalties from indigenous energy sources for the reduction of electricity rates to end-users as stipulated in Senate Bill (SB) 3148.
In addition, PCCI is also pushing for the allocation of a substantial amount from the royalties to support energy efficiency initiatives that would enhance the competitiveness of business enterprises.
The Joint Foreign Chambers of Commerce in the Philippines through its chairman, Petteri Makitalo, said that aside from bringing down taxes that are passed on to consumers, the government should also “remove barriers to entry for those who wish to harness alternative sources of energy.”
The power bills authored by Senate president Juan Ponce Enrile and its counterparts in the Lower House—House Bills 6208 and 6207—aim to change the government’s treatment of public service, including services provided by public utilities, as major source of revenue to reduce the country’s electricity rates.
SB 3148 aims to reduce the royalties collected by government from indigenous energy sources from 60 percent to 3 percent of net proceeds from the sale of such energy sources.
On the other hand, SB 3147 seeks to reduce the layers of taxes imposed on this industry to lower electricity prices by charging a uniform 3-percent franchise tax on the distribution income of distribution utilities in lieu of all national and local taxes.
Currently, the government collects a 12-percent value-added tax on top of the 32-percent corporate income tax of power utility firms. A local franchise tax is also imposed on these companies’ gross receipts, which are then passed on as additional charges to consumers.
Enrile earlier said that if the said bills are passed, then businesses and industries will have their power costs reduced by P1.34 to P2 per kilowatt-hour, while electric bills of residential consumers will go down by at least P1 per kilowatt-hour. — Euan Paulo C. Añonuevo, Manila Times
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