BY CARLA GOMEZ
Monday, May 22, 2017

The Sugar Alliance of the Philippines is strongly opposing the proposed excise tax on sugar sweetened beverages as it will further bring the sugar industry down and is calling for a 5 to 6-year exemption at least, its spokesperson, Emilio Yulo III, said yesterday.

The Visayan Bloc is set to file an amendment to the proposed excise tax on sugar sweetened beverages today, which, if not amended could cause the sugar industry losses estimated of P7.8 billion annually, Rep. Alfredo Abelardo Benitez (Neg. Occ., 3rd District) told the DAILY STAR Friday.

AP10 per liter excise tax on sugar-sweetened drinks is being proposed, but Benitez said their amendment will push for a reduction to P5 to lessen the impact on the sugar industry.

Yulo said the excise tax on sugar-sweetened drinks will be a double whammy as far as the sugar industry is concerned and they sent representations to both Houses of Congress to hear their 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 HFCS (high fructose corn syrup),” Yulo said.

Yulo said SAP is thankful that 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.”

“The sugar industry is just starting its modernization to be more productive and globally competitive under the Sugar Industry Development Act fund of P2 billion. Having this excise tax implemented on us now will just defeat the very purpose of the fund coming from government,”Yulo said.

Benitez told us that 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, he added.

“However, we have not really taken off from the SIDA implementation and this tax reforms which are eyed to be implemented soon, will probably hurt the sugar industry badly,”Yulo said.

“We are also joining cooperatives opposing the elimination of their exemption from taxes as we have hundreds of agrarian coops in the sugar industry who have survived because of this exemptions. Taking that away from them, coupled with the additional excise tax will spell doom for our already embattled sugar industry”, Yulo added.*CPG