SSB tax on beverages will further cripple those in D & E income levels

CONSUMERS are not aware of the impact of SSB tax on beverages, similar to the citizens of Cook County in Chicago, Illinois, USA. What is not realized is that the tax will mostly affect the poor who will suffer more from the sugar-sweetened beverages tax than other citizens.

Most of the consumers of beverages in the country are from the D&E demographic. Should the tax be passed, many will not be able to afford to buy these drinks they enjoy

• Like the Cook County soda tax, the SSB tax in the Philippines was never about health. Lawmakers claim that it is meant to help curb obesity and diabetes in this country. These claims have been debunked by a Food and Nutrition Research Institute study.

Obesity and diabetes are caused by a variety of reasons, not just the consumption of sweetened beverages. Filipinos don’t even consume a lot of sweetened beverages, which accounts for more or less than 2 percent of our diet. Almost 50 percent of our diet is actually rice.

• Like the Cook County soda tax, the SSB tax is about looking for a resource that the government can get their budget from. The SSB tax is part of TRAIN – a tax reform program that intends to lower income tax and expand VAT.

So a tax on purchases – not just on beverages – will be imposed to cover the deficit from lowering the income tax.

(Note: According to the World Bank in 2014, the total domestic workforce is 75 percent informal and 25 percent formal. The latter will reap the benefit of lowering income tax. However, everyone will be affected by the price increase of goods.)

• Like the Cook County soda tax, the SSB tax will affect the livelihood of many citizens; one sector that will take a huge hit are small and medium-size enterprises.

The Philippine Association of Stores and Carinderia Owners (PASCO) has fought against the tax and even released an open letter to President Duterte, because members fear that this tax will kill their micro enterprises. If their customers can no longer afford to pay for powdered juice or soft drinks, they will eventually stop buying. SSBs account for 30 percent of their revenue – a chunk they cannot afford to lose.

• SSBs are not the only ones that will be taxed. Many others will be under TRAIN. How many more things will the poor be unable to afford? Maybe there are other alternatives to tax that will not have a huge negative effect on the vulnerable sectors of our society?

• We hope our legislators are being careful in crafting the TRAIN bill that is fraught with taxes that will further burden the masang Pilipino? The elections are imminent and our lawmakers should be wary of their actions as Filipinos are watching it closely.

*** THOSE SUPERB LUMAUIG BROTHERS. Ifugao, home of the world-famous Rice Terraces, dubbed by awe-struck tourists as the 8th Wonder of the World, had a big festival-like celebration last week. It marked the foundation anniversary of its latest pride, the gleaming Ifugao State University (IFSU).

There is a bit of confusion about what date to set as the school’s Foundation Day. It first saw the light of day sometime in 1920, basically, as an experimental school providing general elementary instruction.

So.if we reckon 1920 as the date when IFSU was born, it should be celebrating its 94th anniversary today, 2017. It is a nice number. At 94, the Ifugao institution could brag as being older than most other Philippine universities.

But wait, the Ifugao educational landmark only became officially a university on October 14, 2009. So, knock off 86 from its presumptive age of 94 and we come up to the true age of Ifugao State University as 8 years old, which last week the IFSU community and the Ifugaos joyously celebrated.

No celebration or any activity of some magnitude happens in Ifugao without the ubiquitous involvement of two personalities who have been held in deferential esteem by the Ifugaos for decades. These are the Lumauig brothers Romulo and Gualberto.

So, then where do they come in the IFSU business?

Romulo was congressman of Ifugao when the dream of developing a farm school all the way into a university was hatched. A lawyer with political savvy learned from long years of mentorship by seniors in Congress, Romulo devised the strategy and captained the effort that led to the enactment of necessary legislation for the creation of IFSU.

Gualberto, on the other hand, used his power and influence first as governor, then in succession as assemblyman, congressman, and then as close aide and presidential adviser of presidents of the land to bring material support to the aspiring university-to-be, making its aspiration a viable proposition.

Today it can rightly be said that IFSU owes plenty to the Brothers Lumauig.They are incomparable, irreplaceable – inspiring thousands of young Ifugaos who continually seek educational achievement in the institution that is the IFSU.