Opposed to Chiz’s coal proposal groups push wealth tax instead

CEBU, Philippines — Labor and progressive groups in Central Visayas have opposed Senator Francis “Chiz” Escudero’s proposal to generate additional government revenues through the exploration and development of the country’s indigenous coal resources, arguing that the government should instead pursue wealth taxation, improve tax collection, and address corruption.

Escudero earlier urged the national government to maximize non-tax revenue sources rather than impose new taxes, saying that bidding out exploration and production-sharing agreements over coal-bearing areas in Cagayan, Isabela, South Cotabato, and Sarangani could provide substantial revenues for the government.

In a statement, Escudero said that properly structured agreements could yield as much as ?1 trillion in upfront revenues and between ?70 billion and ?100 billion annually, helping fund social protection programs, support energy transition efforts, and strengthen long-term fiscal stability.

“In lieu of new taxes, the government should maximize the resources it already owns,” Escudero said, adding that tapping indigenous energy resources could complement the country’s development goals without placing additional burdens on taxpayers.

However, Dennis Derige, spokesman of the Partido Manggagawa-Cebu, said the proposal runs contrary to the global trend of moving away from coal as an energy source.

“This proposal is detached from the international trend of many countries abandoning coal production as a source of energy. This has even been agreed upon during the Conference of Parties meetings in the past three years. Undoubtedly, this is dirty energy and must be opposed,” Derige said.

Instead of exploiting coal reserves, Derige said labor groups have long been advocating a wealth tax as a means of raising revenues to fund social protection programs and essential services.

“The labor sector has a standing proposal on revenue generation to fund social protection programs and services. This is what we have been calling for since Labor Day, a wealth tax,” he said.

Jaime Paglinawan, chairman of Bayan Central Visayas, also rejected the idea of relying on coal revenues and called on the government to prioritize taxing the country’s wealthiest individuals.

According to Paglinawan, estimates by the IBON Foundation indicate that the government could raise around ?500 billion through a billionaire wealth tax imposed on approximately 3,000 Filipinos with a combined net worth of ?8.15 trillion.

Paglinawan also urged the Bureau of Internal Revenue to strengthen tax collection, noting that an average of ?500 billion in taxes is allegedly lost annually due to tax evasion.

He further called for stronger efforts to curb corruption, claiming that around ?1 trillion in public funds is lost each year due to irregularities and excessive government spending, including alleged ghost and substandard flood control projects.

The position of Partido Manggagawa-Cebu and Bayan Central Visayas echoes the broader call of labor groups allied with the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) and Akbayan Party-list for the passage of a legislated wealth tax and a national wage increase.

SENTRO Secretary General Josua Mata said a wealth tax has become more urgent amid rising energy costs, stressing that ordinary workers are struggling to cope with increasing prices while wealth remains concentrated among the country’s elite.

Akbayan Party-list Rep. Perci Cendaña, meanwhile, said the proposed Solidarity Contribution Bill seeks to tax the richest one percent of Filipinos and redistribute resources to fund healthcare, education, infrastructure, and other public services.

The groups maintained that wealth taxation, stronger tax administration, and measures against corruption offer more equitable and sustainable ways of raising government revenues than expanding coal production.

Escudero likewise expressed hopes the government will continue to explore non?tax options alongside existing revenue measures to help support national priorities while being mindful of the public’s capacity to absorb new taxes. — (FREEMAN)