What the regime did was to lower Napocor’s rates. Did you know why we had RVAT? The law that slapped us 12% tax on almost everything we buy? Back in 2004, as par of her win-at-all-costs strategy, Gloria Arroyo lowered Napocor’s rates. The net effect was ballooning of Napocor’s debts, most of which were guaranteed by the government. It brought about budget deficit, and to cover such deficit, we got 12% VAT. Currently, Napocor’s debt is worth half a trillion pesos, which we poor Pinoys are paying through our taxes. And lowering such rates will not help easing that debt. Short-term, we might have a lower electricity bill, but long-term, we are burying three generations of Pinoys in debt.
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