Angara to remove anti-poor provisions in proposed sweet drinks tax

Sen. Juan Edgardo “Sonny” Angara. (File photo by ROMEO BUGANTE / Senate Public Relations and Information Bureau)

Sen. Sonny Angara on Saturday vowed to exclude anti-poor and unfair provisions in the proposed measure that aims to slap excise tax on sugary drinks to make it a more effective deterrent to surging consumption of such drinks that contribute to the prevalence of diabetes and obesity in the country.

In a statement, Angara said the Senate panel would work closely with relevant government agencies to ensure a fairer and more reasonable excise tax on sugar-sweetened beverages, which include soft drinks, 3-in1 coffee mixes, powdered juice drinks and certain milk products.

“The ones who regularly consume these drinks are the ordinary Filipinos, who will really feel the pinch of higher cost of these products. We might be unfairly targeting the poor,” said Angara, chair of the Senate committee on ways and means.

The committee began to hear the tax reform measure passed by the House of Representatives on Thursday. At the hearing, the senator expressed that the proposed P10-excise tax per liter of sweetened beverage might be too high relative to the actual price, which could range from P20 to P30 per liter.

Angara reiterated yesterday that imposing excise tax depending on the sugar content of the beverage might be a more reasonable option. He also said the proposed bill considered coffee and some milk products the same as soda or soft drinks, “which should not be the case.”

He said the bill would need careful consideration as this has a health impact on Filipinos as well as possible repercussions on poor consumers, small-time retailers and the beverage and sugar industries.

According to the Philippine Association of Stores and Carinderia Owners (PASCO), 80 percent of the consumers of sugar-sweetened drinks are low-income earners and around 30 to 40 percent of the income of sari-sari store owners are derived from the sale of coffee, juice and carbonated drinks.

Meanwhile, the Beverage Industry Association of the Philippines said the proposed bill would result in a P20-billion drop in sales of sugar-sweetened beverages.

But health figures show that six million Filipinos across the country have diabetes and this figure is expected to double to 12 million by 2040. Based on Department of Health records, at least six percent of deaths nationwide are related to diabetes. JPV