Power firms pay lower VAT in ’10
The country’s power industry paid lower value-added tax (VAT) of P6.544 billion in the first eight months of the year compared to the P9.49 billion it paid in the same period in 2009.
The 45.2-percent decline in VAT payments came amid robust sales posted by power companies in January to August this year, reaching P276.15 billion, government data showed.
Compared to the same period last year, the industry posted much lower sales of P121.65 billion, but filed a higher VAT of P9.49 billion.
The industry, composed of power players engaged in generation, distribution and transmission of electricity, is likewise poised to report lower-than-expected VAT payment compared to last year’s P18.989 billion.
The transmission sector paid the lowest VAT in January to August this year with only P27.82 million with the generation sector shouldering the bulk with P4.2 billion followed by distribution players paying P2.3 billion of VAT.
The local power industry must shell out P3.1 billion of VAT every month from September to December for a total of P12.4 billion to at least replicate its 2009 finish.
The local power industry was among those enrolled under the 12 percent VAT system when Congress amended in 2005 the first VAT law and passed an expanded version to include previously-exempted industries like electricity and petroleum. (Dino Ng)