A consumer advocacy group echoed the opposition of sugar millers on the Finance Department’s recommendation to levy additional taxes on high-sodium food products and sugary drinks.
The group calling itself “Bantay Palengke” (market guardians) issued a statement over the weekend expressing opposition to the recommendation of Finance Secretary Benjamin E. Diokno for new taxes.
According to the group, “any additional tax is an additional price burden.”
“We know for a fact that many poor Filipinos rely on cheap instant noodles and canned goods due to our current economic situation,” the statement quoted its convener Lester Codog as saying.
“How will they manage their meager budget if we will add another P10 on every 100 grams of affordable products that can help them ease hunger?” Codog mused.
A report on June 21 by state-run news outfit Philippine News Agency quoted Diokno as saying the Department of Finance (DOF) and the Department of Health (DOH) “are jointly pursuing a junk food and sweetened beverage tax as a proactive measure to tackle diabetes, obesity and non-communicable diseases related to poor diet.”
Health issues
ACCORDING to the report, the DOF plans to impose a P10 per 100 grams or P10 per 100 milliliters tax on pre-packaged foods lacking nutritional value.
Diokno also proposed to impose a P10-tax per 100 grams or P10 per 100 milliliters of prepackaged food products that have either high salt or high sugar content.
But the group “Bantay Palengke” said while the health issues resulting from the consumption of junk food are unarguable, these, however, tide over many Filipinos from hunger.
According to Codog, “there are other ways to approach this problem without adding another burden to our people.”
“As for the need for revenue, we suggest that the government address the inefficiency in our tax collection first and plug the leaks in revenue collection,” he added.
“Bantay Palengke” is also looking to propose ways for the government to subsidize healthy food such as fruits and vegetables so poor people will be able to afford more nutritious food.
“This could be a win-win situation for both our farmers and consumers, for the management of food prices and for health,” the group’s statement read. “It should be clarified, however, that the subsidies should come first before we consider any new tax on the poor’s staple food.”
Sugar millers
MEANWHILE, Diokno’s proposal to increase next year the sweetened beverage tax to P12 regardless of the type of sweetener used has met opposition from the Philippine Sugar Millers Association (PSMA).
“Instead of focusing on increasing tax rates, [the] DOF should prioritize the enforcement of existing laws to ensure compliance and fairness,” PSMA Executive Director Jesus L. Barrera was quoted in a statement the group issued on June 23.
The additional revenue can be realized from the thorough enforcement of existing tax laws, Barrera said.
Furthermore, what purpose does it serve to raise tax rates if there are individuals or companies that fail to adhere to them, he added.
The PSMA emphasizes that increased tax collection efficiency will not create an adverse impact on affected sectors yet it will achieve the government’s health and revenue objectives.
The significance of an effective tax collection mechanism extends beyond public health concerns. It offers a reliable source of revenue for the government that is directed towards essential public services and reinforces public trust, particularly in the aftermath of the pandemic as the economy recovers.
In light of these concerns, the PSMA urges the DOF to reconsider its proposal and engage in a comprehensive dialogue with all stakeholders, including sugar millers, sugarcane farmers, and industry experts.
Image credits: 136063724 © Lenutaidi | Dreamstime.com
