Senator Sherwin Gatchalian applauded the Energy Regulatory Commission's (ERC) decision to postpone the National Grid Corporation of the Philippines' (NGCP) inclusion of a 3% franchise tax in transmission charges owed to distribution utilities on Friday.
Gatchalian believed that it will be favorable for the consumers as they can save P37.32 annually for every 200 kWh consumed every month, which is a "big win" for them.
According to Gatchalian, it is the responsibility of big companies, such as the NGCP, to pay the right taxes instead of passing them on to electric consumers.
"Itong desisyon nila na wag singilin ang 3% franchise tax sa mga consumers, malaking bagay &lsquo;yan para sa ating mga consumers," said the senator.
"Lahat ng korporasyon dapat magbayad ng buwis lalo na pag kumikita. Ang NGCP hindi sila nagbabayad ng buwis, tayo ang nagbabayad ng buwis para sa kanila. Kaya itong desisyon ng ERC na tanggalin yung 3% franchise tax sa ating billings, sa ating mga binabayaran, malaking panalo para sa atin," he added.
Meanwhile, the Senate will scrutinize NGCP because of its unfulfilled projects in the electricity sector, despite generating billions.
The NGCP is 40% owned by China, so some lawmakers are already looking to revoke it.

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NGCP's franchise tax suspension a 'big win' for consumers, says Gatchalian