Erwin Tulfo, Tito Sotto file bills on system loss, tax relief after SONA 2026

Senators Erwin Tulfo and Vicente “Tito” Sotto III on Tuesday filed separate legislative measures seeking to address electricity costs and provide tax relief, following President Ferdinand “Bongbong” Marcos Jr.’s call in his fifth State of the Nation Address (SONA).

Tulfo, chairman of the Senate Committee on Energy, filed two bills and a resolution aimed at reducing electricity charges and investigating system loss pass-on costs to consumers.

He filed the following measures:

• Senate Bill No. 2339, or the proposed Energy Tax Repeal Act
• Senate Bill No. 2340, which seeks to exempt system loss charges billed to consumers from value-added tax (VAT)
• Senate Resolution No. 537, which calls for an inquiry into the policy allowing system loss charges to be passed on to electricity consumers

Tulfo said the committee will continue its hearings on proposed amendments to the Electric Power Industry Reform Act of 2001 (EPIRA) and other energy-related measures on Thursday, July 30.

“At the hearing last week, we already underscored the bill shocks wrought by heavy system loss charges and taxes. All these are carried by our struggling countrymen,” he said.

In his SONA on Monday, Marcos said it was time to stop passing system loss charges and their corresponding VAT to consumers, urging Congress to amend EPIRA.

System loss refers to electricity lost during transmission and distribution due to technical issues or illegal activities such as electricity pilferage and the use of “jumpers.”

Meanwhile, Sotto filed a measure seeking to raise the annual income tax exemption threshold to P350,000 starting January 1, 2027.

Under Senate Bill No. 2338, or the proposed “Expanded Income Tax Exemption of 2026,” individuals earning P350,000 or less annually would be fully exempt from income tax.

“This measure aims to provide meaningful tax relief and allow Filipino workers to keep more of what they earn,” Sotto said.

The proposal aligns with Marcos’ call for Congress to increase the income tax exemption threshold to boost take-home pay and ease the burden on middle-class families amid rising living costs and the lingering effects of the Middle East fuel crisis.

Marcos specifically urged lawmakers to raise the threshold to P350,000.

Under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, individuals earning P250,000 or less annually are currently exempt from income tax. — MCG, GMA News