Refiners oppose higher sugar taxes

By Raadee S. Sausa

In a letter, the Philippine Association of Sugar Refiners Inc. (Pasri) told the country’s highest official it submits its “opposition to the plan of generating the necessary additional funds” for government’s programs by imposing higher taxes on SSB.

The letter sent to Marcos last Thursday was signed by Renato P.

Cabati, president of Pasri and also a managing director of Pasri-member universal Robina Corp.

eration and Inclusion (Train) law, or Republic Act (RA) 10963.

The group told the President that after taking effect in 2018, the Train Law has provided the national government earnings of about P40 billion a year from the excise taxes on SSBs.

“Notwithstanding this huge contribution by the sector, reports about inefficiencies in tax collection by the government continue to persist,” it added.

Moreover, the Pasri said that addressing these inefficiencies within the revenue “presents a win-win solution” where the much-needed revenues are raised while avoiding the imposition of an additional tax burden on an industry, “which can ill afford it at this critical time.” of 35.99 kilograms in 2017 to 28.98 kilograms in 2022,” the letter read.

The Pasri also said that the decline in sugar consumption continues even as the economy is recovering from the pandemic.

“In view thereof, we earnestly urge His Excellency to withhold support and instead strongly oppose the proposal to increase indirect taxes on sugar,” the group said in its letter to Marcos.

SRA Acting Administrator and CEO Pablo Luis S. Azcona said the Sugar Regulatory Administration (SRA) takes “cognizant” of the letter.

“We are doing consultation with various stakeholders on the matter,” Azcona added.

The Joint Foreign Chambers of the Philippines (JFC) has also urged the Marcos administration to reconsider the proposals to impose new taxes on “junk food” and increase the existing tax on sugar sweetened beverages, saying going ahead with these moves would be “inflationary” for Filipino consumers and “discriminatory” to certain businesses.

(See https://businessmirror.com. ph/2023/06/30/jfc-to-govt-goslow-on-salt-sugar-tax-bill/)

“Since the imposition of the sweetened-beverage tax, the industry has experienced a downward trend in sugar consumption in the country—from a per capita consumption

The Pasri letter was sent to Marcos days after the Philippine Chamber of Food Manufacturers Inc. (PCFMI) also emphasized the potential negative repercussions of the proposed tax hike.

Last month, Finance Secretary Benjamin E. Diokno said the Department of Finance and the Department of Health are pushing for a junk food tax and incremental hikes in the sweetened beverage tax that are seen to generate at least P76 billion in additional state revenues.

(See https://businessmirror.com. ph/2023/06/22/dof-doh-pushsugar-and-salt-tax-eye-p76-bmore-revenues/)

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