BIR Ruling No. 084-80

June 27, 1980 BIR RULING NO. 084-80 Mercor Services Corporation Merville Park, Paraaque Metro Manila Attention: Ms . Herba R . Ungco Treasurer Gentlemen : This refers to your letter dated October 29, 1979 imposing the following query: "We are, under the Provisional Authority granted to us by the defunct Board of Power, and the present Board of Energy, the Operator of the electric light, heat and power system in Phases III to IV, Merville Park Subdivision, Merville Park, Paraaque, Metro Manila. We buy power from Meralco and distribute the same among our customers. As we are in Metro Manila and our residential rates are higher than the residential rate of Meralco, we would like to know if we should charge the prescribed energy tax." In reply, I have the honor to inform you that as an electric utility, operating in Paraaque, Metro Manila and servicing residential customers thereat, you should charge and collect the energy tax even if your electric power rates are higher than those of Meralco. Under Batas Pambansa Blg. 36, graduated rates of the energy tax apply to every residential customers of electric power utilities located in Metro Manila, regardless of the electric power rates charged by the electric utility. It is only in areas outside Metro Manila where the energy tax shall not apply if the electric power rates (excluding the energy tax) in said areas are higher than the electric power rates (including the energy tax) prevailing in Metro Manila. Very truly yours, RUBEN B. ANCHETA Acting Commissioner