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Do we need carbon tax?

Published Feb 24, 2023 12:05 am
A proposal to impose carbon tax on the use of electricity to raise extra funds for initiatives against climate change is up at the House of Representatives. The measure was filed by Camarines Sur 2nd District Rep. LRay Villafuerte, together with fellow congressmen from the province — his son Rep. Miguel Luis Villafuerte (5th district), Reps. Tsuyoshi Anthony Horibata (1st District), and Bicol Saro Party-list Rep. Nicolas Enciso VIII, who has just been replaced as the partylist’s nominee. Under the House bill, the carbon tax on the use of electricity will be equivalent to ₱1 for every kilogram (kg) of carbon dioxide (CO2) emission per kilowatt hour (kwh) of power consumption. This will be tucked in the monthly electricity bills of consumers. “Abrupt climate change is not only imminent; it is here. It is consequently necessary for us to make a significant contribution to the global effort to stabilize GHG concentrations in the atmosphere,” the elder Villafuerte stressed in justifying the measure. “The swift congressional approval of HB 4739 will send a strong message to the global community of our country’s steadfast commitment to international climate action policy and the 19th Congress’ affirmation of the people’s right to a balanced and healthy ecology as well as the State’s paramount duty to safeguard such right for the present and future generations.” Nothing is wrong with any move to address the effects of climate change. In fact, any effort to mitigate the effects of climate change is a welcome development. But proposing a new tax to help address climate change may have come at the wrong time. The country is still reeling from the ill effects of the Covid-19 pandemic and Filipinos are still in the recovery stage. In fact, some — particularly those in the fringes — have yet to even start recovering. While the ₱1 tax for every kg of CO2 emission per kwh may appear pittance, this is still a burden too heavy to bear under the current economic environment. This carbon tax will take a chunk from families’ respective budgets. Besides, it appears like a punitive measure for consumers who have no other choice but to make use of greenhouse gas-emitting energy that is offered on the table. Filipinos are already bearing a heavy yoke, and adding another tax may be too much to bear. If the intention is to send a strong message of the Philippines’ commitment to global climate action, we believe it can be done in other ways without necessarily adding another burden on Filipino families’ shoulders. Rather than burdening Filipinos, particularly those on the fringes, with another tax, why not come up with more measures to encourage the use of renewable energy (RE) — like stimulus package for the power and transport sectors that utilize non-fossil energy, and incentives for car firms and other companies that offer products that use clean energy.

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Editorial Do we need carbon tax? A proposal to impose carbon tax on the use of electricity to raise extra funds for initiatives against climate change is up at the House of Representatives
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