Manila, Jan. 8 -- Senator Francis Escudero said Thursday that exempting electricity sales from the 12 percent value-added tax (VAT) is a targeted measure that differs from across-the-board tax cuts.

In a news release, Escudero said his proposal, designed to ease power costs without undermining fiscal stability, focuses on the power sector and should not be conflated with calls to reduce the VAT rate.

"While broad tax cuts may strain government revenues, lifting the tax on electricity is a fiscally responsible choice. It balances social equity with economic necessity, ensuring that families and industries feel relief without compromising our ability to service debt, among others," Escudero said.

He acknowledged earlier remarks by Execu...