Higher coal tax to end Semirara’s 41-year exemption
Their happy days as a local coal producer will soon be over.
Semirara Mining and Power Corp. will be among the major losers once the first package of the Tax Reform for Acceleration and Inclusion gets signed into law, as lawmakers decided to remove exemptions and impose heftier tax on coal.
The TRAIN bill finalized by Congress raised the coal excise tax rate from the current P10 per metric ton to P50 per metric ton in the first year of implementation, P100 in the second year, and P150 in the third and succeeding years.
The P10 rate has been in place since 1988, while local coal producers have been exempted from paying the tax all the way back to 1976.
Bilyonaryo Isidro Consunji earlier slammed the Senate’s move to remove the tax break and raise all tariffs on coal, calling it “unfair and discriminatory.” Semirara shares tanked on the day when senators approved the additional coal taxes.
Higher duties on coal were not part of the original proposal of the Department of Finance, as they wanted to introduce these under a later tax package. Senators, however, decided to include it this early in order to keep the additional revenue stream at P130 billion.