Gov’t to consult industries on WTO tax ruling

THE Philippine government is set to conduct consultations with various local distilled- spirits and sugar industries before complying with the excise tax system on the treaty provisions of the World Trade Organization.

During a hearing of the House that the consultation must be Committee on Ways and Means on made to strike a balance that Wednesday to determine the would be for the good of locals proper course of action of the govand to serve the country’s obligaernment on the ruling, Solicitor tions as member of good standing General Jose Anselmo Cadiz said of the trade organization.

Panel chairman Isidro Ungab of Davao City said that they would invite stakeholders of the distilled- spirits and sugar industries to get inputs on how to mitigate negative effects of the ruling of the trade organization.

“All sectors must be considered and heard. If needed, we will conduct marathon hearings to meet the timetable required of us by the WTO,” Ungab added.

Also during the hearing, Rep. Tomas Apacible of Batangas province and Rep. Jocelyn Limkaichong of Negros Oriental province — whose provinces produce sugar and molasses that are raw materials in making distilled spirits — agreed that those affected should be invited to give their side on the ruling.

Distilled Spirits Association of the Philippines president Olivia Limpe-aw told the committee that the government should minimize the negative effects of the ruling on the industries.

“We have to balance this out to be fair to the industry and also comply with the WTO,” Limpe-aw said as she reiterated their opposition on the proposals for restructuring the existing excise tax to unitary rate.

“We would like to make our products still affordable so that in the end we can still produce products that they can afford. To us that’s the most important because without consumers what are we in business for? We’ll end up closing shop and they’ll end up having nothing to purchase if we jack up our prices too high and they cannot afford. These are the important things; that we continue to provide employment, support the sugar industry and provide drinks that are affordable while meeting our WTO obligations,” Limpe- aw added.

The trade organization’s Dispute Settlement Panel ruled in August 2011 that the Philippines’ excise tax system violated fundamental rules of the organization that prohibit discriminatory treatment of imported spirits.

The European Union and the United States earlier claimed that the Philippines’ excise tax on distilled spirits violates its obligations under Article III-2, first and second sentences of General Agreement on Tariffs and Trade of 1994.