MANILA – The Philippine Chamber of Commerce and Industry (PCCI), the country's largest business organization, fears that the Senate version of the Tax Reform for Acceleration and Inclusion (TRAIN) bill would drag the competitiveness of local businesses.
This, after the Senate’s version of tax reform program will implement additional taxes on coal, which will lead to higher power cost.
"Power quality and costs are, indeed, among those critical elements that are always viewed with clinical valuation by foreign and local investors, especially with regards to heavy or so-called “bricks and mortars” type of production, which we need to focus on, too. Many have left some years ago due to high and unpredictable power costs and policies," PCCI President George Barcelon said in a statement Monday.
Senate's TRAIN bill increases coal excise tax from PHP10 per metric ton to PHP300 in the third and succeeding years.
The increment will be in three tranches, starting PHP100 in 2018 then adding PHP100 in 2019 until it reached the PHP300-level by 2020.
Data from the Department of Energy showed that coal-fired power plants accounted for 44 percent of power generation in 2015.
"To continue unlocking our country’s economic potential and improve living standards, power supply must be delivered in an accessible, affordable, reliable, sustained and competitive manner," said Barcelon.
"It is, therefore, imperative that any policy affecting the quality and costs of power supply should be approached with active awareness and purpose of enhancing the key elements of our economy and that the same shall promote sensitive inclusiveness," he added.
The PCCI chief noted that the Philippines is already "poorly situated in terms of power cost competitiveness", and preventing the increase in power cost should be a priority.
We now enjoy this rare opportunity when our country is catching the eye of international business community, so let us not rock the boat, as it were, by tinkering and erroneously demeaning the impact of any increase in our power cost," Barcelon said.
The Senate approved on thrid and final reading its version of TRAIN bill last week. (PNA)
