Albay 2nd district Rep. Joey Salceda, chairman of the House Committee on Ways and Means, said that his panel is open to increasing excise taxes on 'sin' products and sugary beverages, but not for taxes on junk foods.
This, after the Department of Health said that it would push to increase excise taxation on junk foods and sweetened drinks.
READ: https://mb.com.ph/2022/09/10/doh-proposes-higher-sin-tax-on-junk-food-sweet-drinks-to-curb-obesity/
Salceda highlighted the excise taxation on sugary beverages given the recent sugar importation mess.
“We will definitely consider the proposals for higher taxes on sweetened beverages. It might help reduce overall sugar demand and help us manage the supply deficit and reduce the need to import. It seems like there is space, especially since sugary drinks increased prices year-on-year by just 3.9% last August. According to official statistics, sugar prices increased 26% over the same period. So, obviously, there is very little pass-through, especially since sugary drinks use imported bottler’s grade sugar, the wholesale price of which is just P20/kg,” Salceda said on Sunday, Sept. 11.
Salceda also expressed the panel's openness to increasing taxes on sin products which include cigarettes, alcohol, and vape products.
“We will definitely consider the proposals. In fact, I am already preparing a bill on higher taxes on vape products, especially now that global jurisprudence already acknowledges the harm in vaping,” Salceda said, after a tentative agreement on a multi-state settlement with JUUL Labs, a vape product manufacturer, worth over $438.5 million," he continued.
However, on the subject of junk foods, Salceda affirmed the House tax panel's "disinclination."
“We are disinclined towards a junk food tax. It seems that global best practices that really work are closer to regulation than taxation, especially on salt levels. The Singapore model is industry and government working together to lower salt levels in food," the Albay lawmaker explained.
“The better approach there might be to restrict sales in schools where children have greater access to them. Besides, defining what junk food is will definitely be a challenge," the House tax chair concluded.