Philippines House Considers Soda Tax Bill

The measure would up the tax on non-alcoholic drinks and other beverages by 10%.

March 05, 2014

MANILA, Philippines – The Filipino House of Representatives is looking at a bill that would add an additional 10% tax on soft drinks and other nonalcoholic carbonated beverages sold in bottles or other containers, the Sun Star reports.

Rep. Estrellita Suansing introduced the bill, which would gather revenue for a rehabilitation program to help victims of calamity. “Other countries like the USA, France, Netherlands and Finland have realized the need to impose taxes on soft drinks and carbonated drinks,” she said.

During a House committee hearing on the subject, Stella Montejo, who leads the Department of Finance Fiscal Policy and Planning Office, said that the higher tax would bring in around P10.5 billion (approximately $234 million). The Health undersecretary also backs the measure as a way to reduce diabetes and other diseases. “We are fully supporting the bill. Reports said the number two cause of death is lifestyle-related diseases,” said Nemesio Gaco, the undersecretary.

However, the soft drink industry warned that such a move could lead to job loss in retail businesses that sell soft drinks and companies that manufacturer the beverages. “There are many ways to provide employment and income, not only through taxes,” said Adel Tamano, a representative of the Beverage Industry Association of the Philippines.

Meanwhile, in American, soft drink taxes have been popping up around the country. The San Francisco Board of Supervisors is considering a 2-cent-per-ounce tax on energy drinks, sports drinks and soda. If approved by the entire board, voters would have the opportunity to decide its fate in the November election. Meanwhile, an Illinois senator sponsored the bill that would tax sugared beverages at a penny per ounce, while a Connecticut mayor wants the state to consider a statewide tax on soft drinks.

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