MAP urges lawmakers to tax colas, sweet drinks based on sugar content
The Management Association of the Philippines (MAP) wants the tax on sugar-sweetened beverages to be based on a product’s sugar content, a move backed by doctors concerned about the increasing risks of sugar in people’s diets.
The House of Representatives passed in May its version of the tax reform program.
House Bill No. 5636, among others, proposed a P10 tax for every liter of a sweet drink using local sugar and P20 for those using imported sugar, regardless of sugar content.
MAP, which consists of top level management of local and multinational companies here in the country, said in a statement: “We understand the initiative of the Lower House to tax sugary products to fill a large gap in their version, and can support this despite its somewhat regressive nature.”
“However, we suggest that the tax be based on sugar content, not on the liquid volume. Also, we support the exemption of milk products, which are mostly for children, and even the coffee mix drink, given its importance in the daily lives of Filipinos,” it added. MAP estimated about 90 percent of adult Filipinos consume a cup of coffee mix drink daily.
Sen. Sonny Angara said the Senate, for its part, would be studying the tax based on the beverage’s sugar content, a move also supported by the Department of Finance.
MAP, nonetheless, has voiced its support for the government’s tax reform program. The first package also aims to lower the personal income tax while increasing consumption taxes.
The group of businessmen said it supported the first package for its intent to reduce the value-added tax exemptions, which were “too numerous.” The group said current exemptions needed to be reduced based on necessity “in order to achieve a net positive outcome for the economy as a whole, not just for a small select group.”
“The tax reform is a bold initiative that will serve us well. It will help establish a stronger foundation for the economic growth and social development of the country going forward,” MAP said.
