Gov’t eyes fatty food, sugary drinks tax
Government is planning to tax your fatty food and sugary food and drinks to raise more revenues and offset the losses from the proposed lower personal and corporate income taxes.
A study on the proposed 2017 budget by the Senate Economic Planning Office (SEPO) on the economic assumptions of next year’s proposed budget showed that the sugary product tax one of three taxes meant to offset the planned lowering of the personal income tax rate, which is expect to incur losses of P159 billion.
The other two taxes are the excise tax on oil and the expansion of the base for the value added tax.
The proposed sugary product tax is expected to reap P18.1 billion in revenues by 2019.
The fatty food tax is estimated to yield P20 billion in revenues by 2019.
The SEPO said the Senate should validate the assumptions of revenues losses and gains.
It noted that the poorest will not be affected by the planned lower personal and corporate taxes because they are minimum wage earners and mostly exempted from paying income tax.