MANILA - Higher taxes on coal and petroleum products may crimp growth in the manufacturing industry and slow job creation, the head of a business group said Wednesday.
The Employers Confederation of the Philippines will release a position paper urging government to look for other revenue sources other than the two said taxes, said the group's president, Donald Dee.
President Rodrigo Duterte on Tuesday signed the first package of tax reform, which raises taxes on coal, fuel and sugar-sweetened drinks, among others, to offset a reduction in personal income tax rates.
"Ang effect sa negosyo, sa manufacturing industry doon tayo mababahala, doon siya tatamaan," Dee told DZMM.
(The effect on business, the manufacturing industry. That's what we're worried about.)
An excise tax will be charged on diesel at P2.50 per liter next year. This will be raised to P4.50 the following year and P6 in 2020. LPG will be taxed P1 per kilo in 2018 and will be increased to P2 pesos the following year and to P3 pesos in 2020.
The excise tax on regular and unleaded premium gasoline will be raised to P7 in 2018 from the current P4.35. This will be increased to P9 in 2019 and P10 in 2020.
The excise tax on coal was raised to P50 per metric ton from P10 in the first year of implementation. It will increase further to P100 in the second year and P150 in the third year. The coal tax has been unchanged since 1988.