The House Committee on Ways and Means is urging the Food and Drug Administration (FDA) to procure more machines and equipment that would determine whether the beverages are sweetened with sugar or high fructose corn syrup (HFCS) to ensure the proper implementation of the excise tax on sugar-sweetened beverages (SSB) as provided for under the Tax Reform for Acceleration and Inclusion Act (TRAIN) Law.
Nueva Ecija Rep. Estrellita Suansing, vice chairperson of the panel, said the procurement of the machines and equipment to test SSB products will be part of the panel’s committee report in connection with its probe on the implementation of Section 150-B of the National Internal Revenue Code (NIRC) of 1997 , as amended by Republic Act No. 10963, otherwise known as the TRAIN Law.
“During the deliberation on this particular law, it was committed by the FDA that you will procure enough machines and equipment, kasama kayo dito (you were included here), we asked your commitment. The FDA has big part in revenue target,” she said during the panel’s meeting to discuss the draft committee report on the House investigation on the implementation of RA No. 10963.
The law was approved on Dec. 19, 2017, as the first of the five packages of President Duterte’s tax reform program.
"Marami tayong hahabulin (We have a lot of catching up to do) for the physical examination of the product, because we missed our target, ang shortfall natin (our shortfall) is P12.3 billion,” Suansing noted.
She noted that a machine would only cost FDA P1 million in expenditure as compared to the P12.3 billion revenue loss from the supposed failure to fully implement the law.
Section 150-B under Chapter 6 of the NIRC, as amended by TRAIN, provides for the collection of tax on sweetened beverages at a rate of P6 and P12, depending on the type of sweetener used.
FDA Director General Eric Domingo relayed to the panel that they will “accredit some laboratories" to do product testing.
“Konti ang laboratory equipment for food kasi low risk ang food (Our laboratory equipment is limited for food) compared to drugs, but now we are gaining this extra mandate, we will strengthen and ensure that we coordinate with our agencies,” he said.
Suansing said one of the recommendations of the panel is to call on the Bureau of Internal Revenue (BIR) not to issue certificate of exemption to products without undergoing actual laboratory test.
Section 150-B of the NIRC, as amended by RA No. 10963, provides for the specific responsibility of the FDA and mandates the BIR Commissioner to ensure the payment of excise tax on sweetened beverages.
Suansing and her husband, Sultan Kudarat Rep. Horacio Suansing Jr., authored House Resolution No. 227 calling on the House Committee on Ways and Means, chaired by Albay Rep. Joey Salceda, to look into the implementation of Section 150-B of the NIRC, as amended by TRAIN.