Sugar prices on the rise

The average retail prices of sugar rose in the second week of April due to an increased demand during the summer season as well as speculations that traders are preparing for the payment of a 12-percent advance value added tax (VAT) next month.

Monitoring conducted by the Sugar Regulatory Administration (SRA) as of April 10

showed that the average retail price of sugar in Metro Manila rose to P44.50 per kilo from P43.50 last April 7.

The average retail price of washed sugar as of April 10 was placed at P48.50 per kilo from P47.50 on April 7. The average retail price of refined sugar, meanwhile, increased to P51.50 per kilo from P51.

SRA administrator Ma. Regina Martin said the price increase may be attributed to an increase in demand during the summer season brought about by higher consumption of cold drinks.

“Also, we are nearing the end of the milling season,” Martin said.

But an industry source who refused to be identified said some traders may have been increasing their prices by at least P50 per 50-kilo bag in preparation for the implementation of the advance VAT on raw and refined sugar.

According to Martin, the new revenue regulation would be implemented on May 1, with the condition that payment for the advance VAT would not be shouldered by consumers. The Bureau of Internal Revenue (BIR) published the new regulation on the last week of March, reiterating that sellers of refined and raw sugar are required to pay in advance a 12- percent VAT before the sugar is withdrawn from the warehouses.

The BIR also maintained that only raw cane sugar or muscovado sugar is exempt from VAT payment because it is produced without the use of any mechanical device.