Food manufacturers oppose higher tax on sugar-laden drinks

A group of food manufacturers is urging government to promote other policies and programs for revenue generation and health improvement, instead of pushing for an increase in excise tax on sugar-sweetened beverages, which they said would hinder economic growth.

The Philippine Chamber of Food Manufacturers Inc. (PCFM) said policymakers should focus on plugging revenue leakages and boosting the collection efficiency of the Bureau of Internal Revenue and the Bureau of Customs “instead of focusing time and resources on pushing revenue measures that run the risk of contracting the economy.”

House Bill 292 seeks to slap a P10 per liter excise tax on sugar-sweetened beverages.

“The food chamber implores our lawmakers to explore other measures that can help reduce obesity without causing detriment to consum- ers, the manufacturing sector, the agricultural sector, and the economy as a whole,” it said.

The PCFM said it would be best if further studies be undertaken in regards to HB 292, which is part of the Duterte administration’s first tax reform package.

“The food chamber believes that further studies should be conducted to ensure that HB 292 will be able to address both its revenue and public health goals,” it said.

Among the group’s suggestions include an in-depth report from the Department of Health or the Food Nutrition Research Institute on the causes of obesity in the country, as well as an assessment on the combined impact on agriculture and the sugar and beverage industries of HB 292 and a separate proposal for a P5 tax on sugar.

The group said it understands fully the two broad objectives of HB 292, which are

to generate revenues for the government and to address a public health concern, and is willing to collaborate with the government to improve the health and wellness as well as the quality of life of every Filipino.

“With respect to the pro- posed sugar-sweetened beverage tax, however, the food chamber respectfully submits its opposition to it and calls on the government to conduct a far ranging socio and economic impact assessment before it makes a decision on the tax,” it said.