Climate group welcomes OK of coal tax

MANILA, Philippines — Climate protection advocates welcomed on Tuesday Congress’ approval of the coal tax.

In a statement, Ian Rivera, national coordinator of the Philippine Movement for Climate Justice (PMCJ), lauded the Senate and the House of Representatives bicameral committee for its concern on climate and the impact of coal.

“Yesterday, the joint session of the House and Senate passed a coal tax, which is a compromise on the positions of both bodies. The bicam approved the tax measure on coal. Whether domestic or imported, coal will be levied P50 per metric ton starting 2018, P100/metric ton by 2019 and P150/metric ton by 2020. The amount is half of what the Senate would like to have passed within the same three-year period,” Rivera said.

Rivera said the increase can be considered significant if is based on the current 40-year-old coal tax rate of P10 per metric ton.

“We welcome the passage of the coal tax. At last, a 1400x increase of the almost 40-year-old insignificant tax has been laid. This is a positive step toward obligating the coal companies and those who profit from the climate crisis from the destruction they have caused to communities, the environment and climate,” Rivera said.

“Even though the amounts still will not weigh much on the gravity of the destruction and impacts on climate that burning coal has caused, the bicam efforts to increase the tax are a testament to the concern on climate and impacts of coal,” he said.

Rivera said that during several days of deliberation on the coal tax, environmentalists and pro-coal tax economists noticed the strong lobby by the coal industry to bring down the amount or to scuttle the coal tax. 

He said the industry strongly lobbied with media, asserting that the coal tax is inflationary and violates customers’ human rights.

“The coal tax corrects the imperfection of the current tax rate whose amount at P10/metric ton or a measly P0. 01/kg is very negligible for the profit-hungry coal companies. The current tax rate that was replaced is like an incentive for coal companies to continue destroying the environment and climate,” Jun Ano, of the Bukluran ng Manggagawang Pilipino - Western Visayas, said. 

“The workers have negative experiences on taxes since these eat up our meager income. However, this coal tax is a progressive one since it will not trigger an increase in electric power rate paid by the consumers. It discourages the use of coal and will pave the way for more solar and renewable energy,” Ano added.

 The groups vowed to continue the fight to ensure that any increase in the coal tax will not be passed on to consumers.