Angara asks DOF to consider tweaking proposed sweetened drinks tax

After a five-hour hearing, Senate ways and means committee chairman Senator Sonny Angara said Thursday he is yet to be convinced of the need to impose a P10-per-liter excise tax on sugar-sweetened beverages (SSBs).

“Sa ngayon, sa tingin namin, medyo hilaw pa; kaya pinapaaral pa namin sa DOF [Department of Finance] kung ano yung alternatibo,” Angara told reporters in an interview.

Imposing excise tax on SSBs is part of the comprehensive tax reform package pushed by the administration, which also seeks to lower personal income tax rates.

Angara said that the Senate will pass a “reasonable” proposal.

Under the existing proposal, the cost of a one-liter bottle of soda will increase by P11 or from the current P27 to P38. The prices of sachets of powdered drinks, such as juice and 3-in-1 coffee, are projected to increase from P9.75 to P20.75.

Taxing by sugar content instead of volume

Angara said the DOF should consider tweaking its proposal by using as basis beverages' sugar content rather than volume.

“Yung makakatulong sa kalusugan kung i-e-encourage natin yung healthy habits, dapat hindi volume-based, kung hindi sa sukatan ng laman,” he said.

“Ang ginawa kasi sa ibang bansa, kapag may tinatanggap na minimum acceptable of sugar, whether 50 grams, tapos yung tina-tax, anything over that tapos pag lumampas ka doon, meron silang scale depende sa content,” Angara explained.

Angara said he plans to pass a committee report on the proposal by September.

SSBs include sweetened juice drinks, tea and coffee, carbonated beverages with added sugar, flavored water, energy drinks, cereal and grain beverages, and other non-alcoholic beverages that contain sugar.

Drinks exempted from the proposal are milk products, natural fruit juices, ground coffee, and unsweetened tea.

Finance Undersecretary Karl Kendrick Chua said at least P47 billion in revenues will be earned by the government from taxing SSBs alone. — BM, GMA News