Quote for the day, May 18, 2008
“First of all, what is important is the objective of the President to lower the power rate (for the benefit) of our countrymen. That’s the number one objective.”
— Deputy presidential spokesperson Anthony Golez, in a Inquirer report
Arroyo can make the initial first step: remove the EVAT taxes it slaps on the band of moving electrons called electricity
a) as it is generated by NAPOCOR and the IPPs
b) as it is being transmitted by TRANSCO over its high voltage transmission lines
c) as it is being distributed by DUs (like Meralco and Visayan Electric) until it reaches our homes.
a) remove the EVAT slapped on the system loss charged by DUs (distribution utilities) to consumers
b) remove the EVAT on the local franchise tax, which is really a tax on a tax
c) remove the EVAT on the amount (lifeline rate subsidy) that consumers using 101 kwh and more donate to subsidize the poorer consumers using less than 101 kwh. They donate, yet they are taxed for their good deed.
And since the Generation charge is more than 50% of our bill:
Arroyo should remove the tax on the fuel used to run the power plants.Since the fuel is taxed and the cost of the fuel is factored into the Generation charge, when the Arroyo slaps a tax on the Generation charge it includes taxing too the tax on the fuel.
With all those taxes removed, our bills could eaisly drop by, at the very least, 10%, as you can see in your bill, and up to more than 20%. What a relief it would be.
It does not require rocket science to know all of the above, so why is Arroyo not doing it?