Sugar tax imposition to hurt small retailers
Philippine Association of Stores and Carinderia Owners (Pasco) is opposing the imposition of sugar tax in the proposed tax reform bill being pushed by the administration of President Rodrigo Duterte.
In an open letter, Pasco appealed to Duterte not to pass the Tax Reform for Acceleration and Inclusion (Train) bill, particularly the provision imposing excise tax on sugar-sweetened beverages.
The tax reform measure recently passed by the congress includes a provision imposing a P10 excise tax on every liter of sugar-sweetened beverages containing locally produced sugar, while others will be taxed P20 per liter.
Based on the price survey of the government, the retail prices of a liter of leading soda drink Coca-Cola will increase from P22 to P34; sachet prices of powdered drinks such as iced tea and fruit drinks will increase from P9 to P20 while three-in-one coffee mixes from P5 to P8.
“We understand and support our government’s need to raise money for its various social and infrastructure programs to help improve the lives of the Filipino people and sustain the country’s economic growth. But we appeal to you, please do not let this bill pass,” the group said in the letter.
According to the group, the measure is anti-poor and would negatively impact small micro-retailer, consumers, sugar farmers, and manufacturing plant workers.