Metro Manila (CNN Philippines, June 21) — The anticipated revenue from the planned early implementation of additional taxes on sweetened beverages and salty junk food increased the proposed 2024 budget to ₱5.768 trillion, Budget Secretary Amenah Pangandaman said Wednesday.
Pangandaman pointed out that the Department of Budget and Management (DBM) only expected a 9.2% rise in the proposed 2024 budget from the approved ₱5.268 trillion budget in 2023.
However, she claimed that given the latest revenue measures put up by the government, they were able to push it to a 9.5% rise during the recent Development Budget Coordination Committee (DBCC) meeting.
READ: DBCC eyes ₱5.768-T national budget for 2024
“The ₱5.768 trillion — 9.5% increase from this year’s budget. Dapat our increase is 9.2%, but during our DBCC two weeks ago, yung mga revenue measures ng DOF (Department of Finance) for sweets and salty foods, supposedly 2025 ‘yan magkikick in, but what they did is they will advance it to 2024,” Pangandaman said in the Kapihan sa Manila Bay media forum.[Translation: Our increase should be 9.2%, but during our DBCC two weeks ago, the revenue measures of the DOF for sweets and salty foods, supposedly in 2025, will kick in, but what they did is they will advance it to 2024.]Pangandaman said the government will push for a measure that would forge the tax hike in 2025.She further noted that the 9.5% increase is still one of the lowest annual budget increases.Meanwhile, Finance Secretary Ben Diokno said the DOF and the Department of Health (DOH) are pursuing this tax measure on junk food and sweetened beverages to proactively address diabetes, obesity, and non-communicable diseases linked to poor diet.
“Under the proposed tax program, the DOF plans to impose a ₱10 per 100 grams or ₱10 per 100 milliliters tax on pre-packaged foods lacking nutritional value, including confectioneries, snacks, desserts, and frozen confectioneries, that exceed the DOH’s specified thresholds for fat, salt, and sugar content,” Diokno told reporters.
“Additionally, the DOF intends to increase the sweetened beverage tax rate under the TRAIN Law to ₱12 per liter, regardless of the type of sweetener used. This tax rate will be indexed annually by 4%, and exemptions will be eliminated to broaden the tax base,” he added.The current tax rate on sweetened beverages is at ₱6 per liter, as set by the Tax Reform for Acceleration and Inclusion (TRAIN) Law enacted in 2017.According to Diokno, the implementation of this tax program is projected to generate ₱76 billion in its first year and reduce junk food consumption by 21%.
Proposed 2024 budget now in final stages
Meanwhile, Pangandaman expressed confidence that the proposed national expenditure program (NEP) for 2024 will be approved faster than the 2023 budget as the DBM is expected to submit the proposal to Congress earlier than usual.
“Under the Constitution po, we should submit the national expenditures program one month after the SONA (State of the Nation Address). On our calendar, we will submit our NEP to the Congress one week after the 24th (of July),” she said.The Budget chief said the NEP has already been presented to President Ferdinand Marcos Jr. and is set to be checked by the Cabinet on Thursday.Once it gets the Cabinet’s final approval, Marcos is expected to submit the NEP to Congress.
