MANILA - The increase in the excise tax on coal will boost revenues to P2 billion next year, the Department of Finance said Monday, as it eased concerns over its impact on power prices.
Households whose power bills amount to P1,500 per month would see an increase of roughly P8, according to DOF estimates.
Power producers account for 80 percent of coal consumption, cement manufacturers account for 15 percent while industry uses the remaining 5 percent.
Lawmakers raised the excise tax on coal to P50 per metric ton during the first year, while exempting local coal from value added tax under the tax reform bill that President Rodrigo Duterte is expected to sign into law on Tuesday.
Beginning January next year, all coal producers will have to pay excise taxes, the DOF said.
The excise tax rate will be increased to P100 per metric ton on the second year of implementation and to P150 on the third year.