Coal excise tax hike to snag rise in exports: lawmaker

The manufacturing and export sectors may see their recovery and competitiveness impaired if the increase in the coal excise tax is approved as part of the tax reform package, according to a lawmaker.

Sen. Sherwin Gatchalian, in a presentation at the recent National Export Congress, said that businesses in the country, including micro, small, and medium-sized enterprises (MSMEs), will see their electricity bills skyrocket should the proposed increase in coal tax pass into law.

Under the Tax Reform for Acceleration and Inclusion (TRAIN) bill, the current P10 per metric ton in excise tax on coal will be raised to P300 per ton, resulting in a 3,000 percent increase, said Gatchalian.

This means that households and enterprises that consume about 200 kilowatts of electricity a month at 50 percent coal pow- With the coal tax in place, all the more that we need to implement the Retail Competition and Open Access circular to democratize our power sector. This will help lower costs to protect consumers from the inflationary effects of the coal tax.

SEN. SHERWIN GATCHALIAN

er will see a P15.344 increase in their electricity bill each month.

Those that consume 100 percent coal power, on the other hand, they will see a P31.36 hike in their monthly bill for every 200 kilowatts of electricity consumed.

Gatchalian, chairman of the Senate energy committee, stressed that the 10 percent projected growth in the manufacturing sector would be imperiled if the proposed excise tax on coal is approved.

“If we want to boost our exports, if we want to boost our manufacturing industry, we need competitive electricity prices,” he said. He said the solution lies in fast-tracking implementation of the Retail Competition and Open Access circular to mitigate the effects of the projected electricity rate hike if the higher excise tax on coal is green-lit./