Tax on carbonated drinks opposed by the beverage industry
After approving the 13th month pay tax exemption revision, the House of Representatives is now focusing on soft drinks. Way back in August, Nueva Ecija Representative Estrellita Suansing filed a petition to impose a higher tax on fizzy drinks.
According to Representative Suansing, the bill seeks to discourage the public from consuming the carbonated refreshments that, according to research, cause obesity among other negative health effects. On December 2, the bill was met positively by Suansing’s colleagues. Aside from promoting a healthier lifestyle, the bill will also generate at least P14 billion a year in tax collections.
However, ABS-CBN News reported on Tuesday that the Beverage Industry Association of the Philippines (BIAP) is opposing the measure and debunking the basis for the petition. BIAP cited a report by the International Tax and Investment Center claiming that more taxes means less revenue.
They added that the legislation is anti-poor and told Congress to impose higher taxes on luxury goods instead.