House of committee to impose ‘soft drinks’ tax

MANILA, PHILIPPINES – An excise tax of P10 will be imposed for every liter of sugar-sweetened beverage as a panel of the House of Representatives approved this bill to promote a  healthier population and to provide additional revenues for the government of about P34.5 billion annually.

The House Bill 3365, authored by Nueva Ecija Representative Estrellita Suansing, is now up for 2nd reading before the plenary.

“We had four committee deliberations, four small technical working group meetings, two main TWG meetings, and one roundtable discussion. It is a much needed revenue measure that will cover and improve our social and health services,” she said in a report by Paolo Romero of The Philippine Star.

Committee on ways and means chairman Romero Quinto said the excise bill is a health bill more than anything else.

Suansing said that that consumption of sugar-sweetened beverages increases the risk of developing health problems like blood sugar disorders, obesity, diabetes and other related diseases such as bone fractures, hyperacidity, tooth decay and heart problems, and the consumption of sweetened drinks can emanate several communicable diseases.

While the health department supports the policy, the beverage manufacturers are against the bill and said that it will affect the consumers and the economy.

The Beverage Industry Association of the Philippines (BIAP) said the excise tax would cause a drop in their sales that will result in forced labor retrenchment, and the increase of cost will be a burden to Filipino consumers.