MANILA, 12 December 2017 — The bicameral conference committee agreed yesterday to increase the coal excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) bill, from its current rate of ten pesos (P10) per metric ton to P50 up to P150 per metric ton over the next three years.
Reacting to the development, Red Constantino, executive director of the Institute for Climate and Sustainable Cities, said:
“The coal tax hike stands as a solid rebuke to the coal industry despite its best efforts to maintain their virtually-tax-free status for four decades. Once signed into law, this bicam measure would mark the beginning of even more comprehensive energy and industrial policy reforms under the Duterte administration.
“This long overdue increase in the coal excise tax is a welcome start in signaling investors that the Philippines is ready to transition to cheaper and more reliable energy which happens to be cleaner. It recognizes the broad support for low carbon development among the Duterte administration, economists and financial experts, local governments, and people’s movements.
“While not enough, the coal tax hike sets the stage nonetheless towards genuine competition in the energy sector. We thank the leadership of Finance Secretary Carlos Dominguez and the support of Senators Ralph Recto, Miguel Zubiri, Joel Villanueva and Loren Legarda in setting up this important first pillar.”
The Institute for Climate and Sustainable Cities is a Philippine-based policy group working on climate and energy policies for climate vulnerable countries. http://icsc.ngo/
AC Dimatatac, email@example.com, +639985469788, +639178514890