The Philippine Chamber of Commerce and Industry (PCCI), the Employers Confederation of the Philippines (ECOP), the Philippine Exporters Confederation (Philexport) and the Trade Union Congress of the Philippines (TUCP) today issued a joint call endorsing HB 6740. Authored by TUCP Party-list Representative and House Deputy Speaker Raymond Mendoza, the bill seeks to exempt electricity sales from Value-Added Tax (VAT).
The organizations emphasized that electricity is a basic and indispensable input affecting households, small and large enterprises, and key industries. Exempting electricity from VAT would provide immediate relief to consumers.
“A VAT exemption on electricity will provide direct and immediate relief to the Filipino people. Removing this burden shows our faith that Filipinos can achieve their highest potential if we stop weighing them down with excessive taxation on our already expensive power," said House Deputy Speaker and the bill's author, TUCP Party-list Rep. Raymond Mendoza. “This is not only an economic measure; it is a social protection that safeguards workers and families. The benefits of cheaper power for both small entrepreneurs and major industries to grow, attract more investments, and generate decent employment for our people do not merely offset but far outweigh the cost to the Government.”
The business groups noted that high power costs remain one of the country’s biggest barriers to competitiveness, particularly in manufacturing. Removing VAT on electricity would reduce operating costs, helping factories expand production, attract new investments, and increase the sector’s contribution to GDP and job creation.
“If we want to attract investors and grow our industrial base, we must address power costs head-on,” said PCCI President Enunina Mangio said. “Removing VAT on electricity is a concrete step toward making the Philippines more competitive.”
The groups added that the measure would not only safeguard jobs but also support the creation of new ones.
“With more affordable power, industries can scale up operations, while micro, small, and medium enterprises can better manage rising expenses and sustain employment,” PCCI Chairman and Director of the Energy Committee, George Barcelon emphasized
The groups underscored that the Philippines is competing for a new wave of investments -especially energy-intensive investments such as data centers, advanced manufacturing, and digital infrastructure.
PCCI Chairman for Energy and Power David Chua noted: “We are in a global race for high-value, energy-intensive investments. Lowering electricity costs through a VAT exemption signals that our country is serious about attracting industries that create quality jobs.”
The groups further stressed that the proposed VAT exemption should be viewed not as a loss in revenue, but as a strategic investment - one that will yield returns through stronger economic activity, increased business confidence, and broader tax bases in the long run. By reducing the cost of electricity, the government empowers industry to grow, enhances productivity, and creates a more dynamic and resilient economy.
"The endorsement by business groups and the TUCP to exempt electricity sales from VAT is heartening. Finally, employers and labor have unanimously agreed that this is the measure that will free up workers and consumers from the burden of VAT and at the same time, trigger the creation of more and quality jobs for Filipino workers with prospects for better livelihoods. This is the better approach than the age-old palliatives and ayuda," expressed TUCP Vice President Luis Corral.

Business groups endorse TUCP bill exempting VAT on electricity sales Measure seen to ease consumer burden and boost economic competitiveness