on Mon, 05/22/2017 By Eugene Y. Adiong

The Sugar Alliance of the Philippines (SAP) expressed opposition to the proposed excise tax on sugar-sweetened beverages claiming that it “will further bring the sugar industry down.”

Lawyer Emilo Yulo, spokesperson of SAP, said the proposal is a “double whammy as far as we are concerned. We have sent representations to both Houses of Congress to hear appeal.”

“We appreciate the move of the Visayan bloc and in fact, we met with some of them last week to discuss how to further reduce the proposed tax. We are aware that this has been certified urgent by the administration in order that our fiscal standing will not be affected by the proposed reforms in income taxes, however, we appeal that the sugar industry be spared from this considering the present situation we are in due to the unabated entry of high fructose corn syrup (HFCS),” Yulo said in a statement.

Earlier, Negros Occidental Rep. Alfredo Benitez (3rd district) said they will push for the amendment to House Bill No. 292 authored by Nueva Ecija Rep. Estrellita Suansing proposing to slap a P10 per liter excise tax on sugar-sweetened drinks.

Benitez said they will propose for a reduction to P5 to lessen the impact on the sugar industry.

The proposal, Benitez said will mean a P7.8 billion annual losses as well as an increase of retail prices of beverage products from 30 percent to more than 100 percent.

“We are thankful that Rep. Albee Benitez and the other representatives from Visayas are working on the reduction but we continue to hope that we will be given at least a 5 to 6-year exemption from this or at the very least a staggered implementation of excise tax on sugar sweetened beverages,” SAP said.

It added that the “sugar industry is just starting its modernization to be more productive and globally competitive under the SIDA fund of P2 billion. Having this excise tax implemented on us now will just defeat the very purpose of the fund coming from government.”

According to Rep. Benitez “the 15 percent from excise tax revenues will more or less amount to P7 billion which will be added on top of SIDA and this may hasten the 10-year development plan for the industry and we are thankful for that. However, we have not really taken off from the SIDA implementation and this tax reform which is eyed to be implemented soon will probably hurt the sugar industry badly.”

“We are also joining cooperatives opposing the elimination of their exemption from taxes as we have hundreds of agrarian cooperatives in the sugar industry who have survived because of this exemption. Taking that away from them, coupled with the additional excise tax will spell doom for our already embattled sugar industry,” SAP said.*(Eugene Y. Adiong)