Carbon Emission Tax Eyed By Department Of Finances
According to the Finance Secretary of the Department of Finance (DOF), the government is learning as much as they can because of this new tax. Because carbon emission is a global priority, it’s something the government wants to learn and see if we are ready to propose a carbon tax. Additionally, increasing taxes on products or activities that aggravate carbon emissions should be part of a two-pronged approach to help boost the shift to renewable sources of energy.
The Finance Secretary also noted that the way to promote renewable is not only to give incentive but also to tax the alternative higher to encourage the shift. Just like how inefficient was the push for diesel and bunker oil despite being taxed with zero excise, because the tax imposed on coal was hardly anything which was at ₱0.1 per kilo.
The government has already started its approach to curbing carbon emissions through taxation under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, over time, the approach will hopefully make a dent as it increases gradually.
Among the provisions of Republic Act 10963 or the TRAIN Act is the increase in the excise tax on diesel at a staggering rate of ₱2.50 per liter, ₱2 per liter and ₱1.50 per liter in the first three years of its implementation. It also increased coal excise tax from the previous rate of ₱10 per metric ton to ₱50 per metric ton in the first year of its implementation, ₱100 in the second year, and ₱150 in the third and succeeding years.
On another matter, Chua said the DOF would complete the submission of all packages under the Comprehensive Tax Reform Program (CTRP) to Congress by the end of the month. He said all proposals would be completed with the submission of Packages 3 and 4.