THE House of Representatives will prioritize the passage of measures that would remove system loss charges from electricity bills and provide income tax relief to Filipino taxpayers, particularly the middle class, in line with the legislative priorities outlined by President Ferdinand R. Marcos Jr. during his fifth State of the Nation Address.
House Speaker Faustino “Bojie” G. Dy III on Wednesday announced that the House is prepared to act swiftly on the President’s proposals, as Congress must move quickly to translate policy commitments into concrete reforms that directly benefit Filipino families.
“Ang tungkulin po natin ngayon ay gawing batas ang mga panukalang magpapagaan sa buhay ng ating mga kababayan. Handa po ang Kamara na kumilos agad upang maisulong ang mga repormang ito,” Dy said.
“Kaisa po tayo ng Pangulo sa layuning mapababa ang gastusin ng mga pamilya at mabigyan ng mas malaking ginhawa ang mga manggagawang Pilipino. Ito po ang klase ng mga repormang dapat nating unahing maipasa.”
The Speaker said the House leadership is moving quickly to keep pace with the President’s implementation timetable, with the proposed tax relief package expected to be approved on third reading by August together with its corresponding revenue measures.
House Committee on Ways and Means Chairperson and Marikina City Rep. Miro Quimbo earlier said Speaker Dy and Majority Leader Ferdinand Alexander “Sandro” A. Marcos are targeting House approval by August to allow the tax relief package to take effect on Jan. 1, 2027.
In his SONA, the President Marcos stressed the need to provide tax relief to Filipino workers, particularly the middle class, saying the government would pursue reforms that “promote growth, generate revenue, and advance equity toward socio-economic sustainability.”
The President also appealed to Congress to pass legislation expanding the income tax exemption and reducing the tax burden on millions of Filipino workers.
The President’s tax package includes raising the income tax exemption threshold to ₱350,000 annually, reducing income tax rates for other workers, exempting small businesses from the minimum corporate income tax, and granting tax amnesty for unpaid income tax, estate tax, donor’s tax, value-added tax (VAT), and the corresponding penalties.
The Chief Executive likewise called for the immediate amendment of the EPIRA to prohibit the charging of system loss to consumers.
“At kung pagbawas ng presyo ang usapan, sa aking palagay panahon na para tanggalin na natin ang system loss na pinapasa sa consumer. Hindi naman kasalanan ng consumer kung bakit nagkaroon ng system loss. Kaya hindi naman tama na kailangan sila pa ang pagbabayarin dito,” the President said.
Under the EPIRA, electricity distributors are allowed to recover system loss charges—covering both technical losses and non-technical losses such as electricity theft—from consumers.
The President’s proposals would require amendments to the Electric Power Industry Reform Act (EPIRA) of 2001 and the National Internal Revenue Code (NIRC) of 1997, as amended.
The Speaker from Isabela emphasized that ordinary Filipinos should not be made to shoulder costs arising from inefficiencies or power pilferage.
“Hindi po makatarungan na ang mga responsableng nagbabayad ng kanilang kuryente ang siyang sasalo sa gastos ng mga pagkawala sa sistema o ng kuryenteng ninanakaw. Ang dapat lamang bayaran ng bawat pamilya ay ang kuryenteng nagamit talaga nila,” he explained.
Based on government estimates, a household consuming up to 200 kilowatt-hours of electricity per month could save around ₱80 monthly if system loss charges are removed.
“Maaaring maliit ang tingin ng iba sa halagang iyan, pero para sa maraming pamilya, malaking bagay ang bawat pisong matitipid sa araw-araw,” Dy said.
The Speaker likewise expressed support for updating the country’s income tax brackets, noting that they have remained unchanged despite years of rising prices and higher living costs.
“Panahon na pong repasuhin ang ating sistema ng income tax. Dapat maramdaman din ng ating mga manggagawa, lalo na ng ating middle class, ang bunga ng kanilang sipag at pagsisikap. Marami sa kanila ang hindi kwalipikadong tumanggap ng ayuda, kaya nararapat lamang na mabawasan ang kanilang pasanin sa buwis at mas malaki ang maiuwing kita para sa kanilang pamilya.”
Dy said the proposed tax adjustments would benefit millions of Filipino workers and help increase the disposable income of households.
He also directed the appropriate House committees, particularly the Committee on Ways and Means and the Committee on Energy, to immediately begin deliberations on the President’s proposals.
“Agad po nating sisimulan ang mga kinakailangang pagdinig upang mapabilis ang pagpasa ng mga panukalang ito. Layunin nating maihatid sa lalong madaling panahon ang mga repormang magbibigay ng tunay na ginhawa sa ating mga kababayan.”
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