A group of sugar millers has expressed opposition to the proposed 10-percent ad valorem tax on carbonated drinks, saying sugar should not be singled out as the “cause” of lifestyle conditions such as obesity.
The Philippine Sugar Millers Association Inc. recently submitted a set of comments to Rep. Quimbo Romero, chairman of the House committee on ways and means, regarding the implementation of the 10-percent ad valorem tax on soft drinks and other sweetened beverage.
“Studies have shown that imposing excise tax on sugar sweetened beverage will not reduce food
and lifestyle-related health problems,” PSMA executive director Franciso Varua said.
PSMA is the umbrella group of sugar mills that account for 82 percent of the country’s raw sugar production.
The proposed tax is embodied in House Bill No. 3365, a bill that seeks to impose additional tax on sodas and soft drinks.
The bill proposes an insertion to the National Internal Revenue Code of 1997 to impose a 10-percent ad valorem tax on soft drinks in bottles and other tight containers.
Many beverage companies are using sugar as their basic sweetener.
More than 50 percent of locally-produced refined sugar goes to the beverage sector.
PSMA said many health problems in the country could not be attributed to the consumption of sugar-sweetened beverage.
PSMA said the bill was being seen by the sugarcane industry stakeholders to be singling out sugar as the “only” cause of the mentioned health problems. It said this was deemed discriminatory by the sugar industry.
Other stakeholders commented that the measure would render sugar prices unstable as sugar, as an agricultural crop, was prey to severe weather conditions and to climate change.
The group said La Niña phenomenon, or the season of excess waterfall, would affect sugar production in the same manner that lack of water or extended dry season would also affect productivity.
It said during La Niña, sugarcane juice has the tendency to become watery. It may take awhile to refine the juices and sugar yield may also be diluted, it said.