The deliberations on EPIRA amendment took traction specially when President Ferdinand R. Marcos Jr. made a call for the removal of system loss charge to ease the burden to electricity consumers. The removal of system loss charge is expected to be highly contentious issue in the congressional deliberations. But the VAT removal on system loss charge may be doable even without amending the law.
To date, ERC and BIR are working together to map out a regulation to address this. However, there remains a quandary: what is the VAT treatment on generation sales corresponding to the system loss within or lower than the system loss cap?
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