New finance chief eyes carbon tax

Newly installed Finance Secretary Ralph Recto is pursuing the tax reform proposals of his predecessor, starting with the imposition of a carbon tax in a bid to generate additional revenues and address environmental concerns.

- LOUISE MAUREEN SIMEON

Recto has called for the study of carbon pricing instruments and the need to identify an optimal mix as he starts his work at the Department of Finance.

Such a measure is not new as former finance chief Benjamin Diokno proposed that carbon tax be one of the measures the Marcos administration may consider.

"Carbon pricing instruments serve as a powerful fiscal tool, allowing us to incorporate the social and external costs associated with carbon emissions," Recto said.

The DOF is leading the technical working group on carbon pricing, together with other government agencies, multilateral banks and development partners.