Bicam reduces Senate-proposed excise on thermal coal by half
THE bicameral conference committee reconciling Senate and House versions of the tax reform package has agreed to reduce the proposed excise tax on thermal coal by half, approving a P50 per metric ton ton tax rate for the first year of implementation, P100 for the second and P150 for the third, the office of Sen. Juan Edgardo M. Angara said.
The approved measure compares with the Senate proposal of P100 for the first year, which is 2018; P200 for 2019; and P300 for 2020, originally put forward by Sen. Loren B. Legarda.
Sen. Angara’s staff clarified as well that these rates are “not yet adopted,” and these are compromise rates before the suspension of bicam yesterday, Dec.8.
Thermal coal is used as fuel by the power industry. Environmental advocates have said that an excise tax will reflect the true environmental costs of using coal, while industry has warned the tax will raise power prices, deterring investment while raising power bills for consumers.
Senator Angara’s office also said the bicameral committee failed to wrap up discussions on Friday, and will reconvene on Monday. — Arjay L. Balinbin
