Senator Escudero urges government to tap coal reserves for non-tax revenues

Senator Francis “Chiz” Escudero renewed his call for the government to prioritize non-tax revenue sources, including opening the country’s indigenous coal reserves to private-sector exploration and production through competitive bidding.

The proposal comes as economic managers continue evaluating measures to improve government revenues and support key priorities such as social protection programs, energy transition initiatives, and fiscal sustainability. While several tax measures remain under consideration, Escudero argued that existing state-owned resources should first be maximized before imposing additional taxes on the public.

Among the revenue measures currently being studied are adjustments to excise taxes on sweetened beverages and certain food products, the Motor Vehicle Road User’s Tax (MVRUT), and a proposed excise tax on single-use plastics.

Escudero said the Philippines has identified coal-bearing areas in Cagayan, Isabela, South Cotabato, and Sarangani that remain mostly untapped despite their revenue-generating potential.

“In lieu of new taxes, the government should maximize the resources it already owns,” Escudero said. “Bidding out exploration and sharing agreements over our indigenous coal reserves is a practical way to raise revenues without imposing additional burdens on the public.”

According to the senator, properly designed exploration and production agreements could provide the government with significant upfront proceeds, as well as recurring revenues from future operations and production-sharing arrangements.

“If done correctly and competitively, these agreements can yield up to one trillion pesos upfront, and around seventy to one hundred billion pesos every year in non-tax revenues,” he pointed out.

The senator added that developing indigenous energy resources could also contribute to the country’s broader energy security and economic development objectives.