📷: Former Bayan Muna Representative Carlos Isagani Zarate
Former Bayan Muna Representative Carlos Isagani Zarate has called on the Marcos administration to immediately refund the value-added tax (VAT) collected on electricity generated from local natural gas dating back to January 2025, demanding that Republic Act No. 12120 (Philippine Natural Gas Industry Development Act) be implemented retroactively rather than from May 2026 onwards so as to lower power rates.
Zarate’s statement comes after the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 002-2026 on March 5, 2026, implementing VAT exemptions on the purchase and sale of indigenous natural gas and aggregated gas. However, the regulation only applies prospectively from the date of issuance, leaving consumers who paid inflated electricity bills for over a year without relief.
“Malinaw ang ating posisyon: dapat retroactive ang VAT exemption mula Enero 2025. Hindi makatarungan na ang batas ay ipinatupad lamang ngayon, habang milyun-milyong Pilipino ang nagbayad ng dagdag na buwis sa loob ng mahigit isang taon,” Zarate declared in a statement.
“The law is clear in its intent—to provide fiscal incentives for natural gas development and to ease the burden on consumers. Yet the Marcos administration has chosen to delay implementation, allowing the government to continue collecting excessive VAT from ordinary Filipinos. This is a betrayal of the spirit of RA 12120 and a slap in the face to struggling families,” he added.
Zarate emphasized that the retroactive application of the VAT exemption is not merely a technical matter but a question of justice and accountability. “Sa tindi ng krisis ngayon, dapat magbigay ng refund sa lahat ng VAT na nakolekta mula nang naging batas ang RA 12120,” he stressed.
The former lawmaker pointed out that the delay in implementing the VAT exemption made the government to rake in billions. “This is how the Marcos administration operates—always favoring big business over the people. They allow monopolies to rake in profits while ordinary families struggle to pay their electricity bills,” Zarate said.
Zarate called on the Department of Energy (DOE), the Bureau of Internal Revenue (BIR), and the Department of Finance (DOF) to immediately issue implementing rules and regulations (IRR) that would make the VAT exemption retroactive to January 2025, and to establish a mechanism for refunding excess VAT collected during the period of delay.
“Kailangan ng aksyon, hindi lamang ng salita. Ang administrasyon ay may kapangyarihang gawing retroactive ang batas. Kung hindi nila ginagawa, ito ay patunay na walang sila pake sa interes ng mamamayan,” he concluded.#
