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By Jomar Canlas, Reporter
The system loss of Manila
Electric Co. (Meralco) is only not subjected to the expanded
value-added tax (E-VAT) but is passed on to consumers.
During Tuesday’s hearing by the
House Committee on Energy headed by Rep. Juan Miguel “Mikey”
Arroyo of Pampanga, the apparent tax exemption enjoyed by Meralco
was raised by Camarines Norte Rep. Luis Villafuerte after Meralco
admitted that its systems loss, or loss resulting from stolen
electricity, should have been taxed.
Villafuerte said Meralco had
applied the E-VAT law wrongly. He explained that E-VAT is a tax on
gross sales of goods and services alone and, therefore, it cannot be
passed on to consumers on account of system loss.
System loss is also brought about
by technical inefficiency, design fault or meter tampering.
“Meralco is not selling at a
loss,” Villafuerte said during the hearing. “E-VAT is a tax on
goods and services. Pilferage cannot be considered as system loss
because it is not gross sales.”
He added that the consumers
should not be made to suffer from system loss, because they do not
gain from it.
Jesus Francisco, Meralco
president, during the hearing admitted that their system loss were
not subjected to E-VAT. He, however, said they had not benefited
from it since the money “goes back to the government.”
Villafuerte asked Napocor
President Cyril del Callar if they could apply a flat rate on the
power that it supplies Meralco.
Del Callar said they will look
into the proposal.
Rep. Arroyo had refused to recuse
himself from the hearing as sought by Rep. Risa Hontiveros of
partylist Akbayan.
He said it was his duty to
preside over the hearing.
Hontiveros had insisted that the
Pampanga lawmaker inhibit himself, in part, she said, because he is
President Gloria Arroyo’s son. The government has been reported to
be supporting supposed attempts to take over Meralco.
Villafuerte intervened and asked
his colleagues not to inject politics into the hearing.
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