The Department of Energy (DOE) is seeking the issuance of an executive order (EO) to suspend import duty on coal outsourced from countries outside the Asean-India Free Trade Agreement (AIFTA).
DOE Secretary Alfonso Cusi made the statement amid the skyrocketing global oil prices that can also affect power rates in the coming months.
“For coal, the tariff –the 7 percent tariff– on coal importation from non AIFTA, there is 7 percent duty. It is being suspended. We are asking for issuance of an EO from the President to suspend it,” Cusi said in a press conference Tuesday.
He said the country aims to expand sources of imported coal, especially from non-AIFTA countries, to promote market competition and lower the price of the commodity.
About 90 percent of the country’s imported coal are sourced from Indonesia, the DOE chief said.
Cusi said that according to generation companies, coal prices in the world market already doubled from USD200 per ton to over USD400 per ton.
Meanwhile, on the suspension of excise tax on oil imports, Cusi said the government eyes to double fuel subsidy for public utility vehicle (PUV) drivers, as well as farmers and fisherfolk instead of suspending the excise tax.
From PHP2.5-billion fuel subsidy for PUV drivers and PHP500 million for the agriculture and fisheries sectors, the government targets to raise the subsidies to PHP5 billion and PHP1.1 billion.
Source: Philippines News Agency