Metro Manila (CNN Philippines, June 27) – Sugar millers on Tuesday opposed the planned tax increase on sweetened beverages, stressing it will be a burden to consumers and that the government should focus instead on ensuring manufacturers comply with existing laws.
\”Diokno should also think of the consumers or the general public who will also be affected as these industrial users will surely pass on the additional taxes to their consumers,\” United Sugar Producers Federation said in a statement.
“Instead of focusing on increasing tax rates, DOF (Department of Finance) should prioritize the enforcement of existing laws to ensure compliance and fairness,\” said Jesus Barrera, executive director of the Philippine Sugar Millers Association (PSMA).
Finance Secretary Ben Diokno earlier said the DOF and the Department of Health (DOH) are pursuing the tax hikes on junk food and sweetened beverages which exceed health authorities’ specified thresholds for fat, salt, and sugar content to proactively address diabetes, obesity, and non-communicable diseases linked to poor diet.
\”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,\” Diokno said. \”This tax rate will be indexed annually by 4%, and exemptions will be eliminated to broaden the tax base.\”
The current tax rate on sweetened beverages is ₱6 per liter, as set by the Tax Reform for Acceleration and Inclusion (TRAIN) Law enacted in 2017.
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The PSMA recommended that the government pursue instead a more efficient collection of the excise tax at its current rates.
The PSMA said \”increased tax collection efficiency will not create an adverse impact on affected sectors yet it will achieve the government’s health and revenue objectives.\”
