MANILA – The Federation of Philippine Industries (FPI) is opposing the imposition of a P10 per liter excise tax on sugar-sweetened drinks, saying this will hurt the industry.
The proposed excise tax is part of the reform package now undergoing plenary deliberations in the House of Representatives.
According to FPI chairman Jesus Aranza, the excise tax will not only dent the sales of beverage companies; it will also cut into the incomes of farmers.
He explained: consumers turned off by the more expensive sugar sweetened drinks could reduce consumption, forcing beverage companies to reduce the volume of sugar they buy from farmers.
As things stand, the industry hopes that if the excise tax on sugar-sweetened beverages won’t be scuttled altogether, the rate imposed would at least be reasonable.
The farmers may not feel the impact at once, but once the beverage companies scale down their production, farmers will start to suffer, said Aranza.
“Ang gusto ko, wala dapat na tax. If I start bargaining now, parang inaamin ko na. My negotiating stand is huwag [My stand is, there should be no tax. If I start bargaining now, it’s like conceding…My negotiating stand is don’t impose it],” said Aranza.
“If you really want to impose tax, it should be minimal—not at a level that will kill us,” he added, speaking partly in Filipino.
