A House bill that seeks to increase tax on sweetened beverages (SB) using purely caloric sweeteners, purely non-caloric sweeteners, or a mix of both, has been filed in the current 20th Congress.

The measure, House Bill (HB) No.5003, was introduced by Mamamayang Liberal (ML) Party-list Rep. Leila de Lima, Albay 1st district Rep. Cielo Krisel Lagman, and Dinagat Islands lone district Rep. Kaka Bag-ao--all members of the minority bloc.

Filed on Tuesday afternoon, Sept. 30, HB No.5003 carried the full title, "An Act amending Sections 150-B and 288-A of the National Internal Revenue Code and creating a new section, 150-C, as amended, and for other purposes."

The three lady solons--who have dubbed themselves the "Liberal Party Tres Marias"--are proposing a tax increase from P12 to P40 per liter of volume capacity on SB using purely high fructose corn syrup or in combination with any caloric or non-caloric sweeteners.

Meanwhile, a tax hike from P6 to P20 per liter of volume capacity shall be levied on SB using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners.

The bill will also impose a P6 tax on all flavored milk, fermented milk, and flavored non-dairy milk beverages and on all sweetened coffee products.

Under the measure, the excise tax collected from SB will be allocated to the following: Philippine Health Insurance Corp. (40 percent), Health Facilities Enhancement Program of the Department of Health (10 percent), and the Department of the Interior and Local Government (50 percent).

These agencies will earmark the funds to specific programs based on the recommendations of the National Nutrition Council and nutrition sensitive interventions.

The authors said that HB No.5003 seeks to improve the status of nutrition nationwide by curbing the consumption of SB and reducing the prevalence of obesity and related non-communicable diseases.

"In 2017, a tax policy imposing a two-tiered specific tax on sweetened beverages was passed into law under Republic Act No. 10963, otherwise known as the Tax Reform Acceleration and Inclusion (TRAIN) Law. It was implemented in January 2018, resulting in a one-time increase in the prices of beverages due to the levied tax rate of Php 6.00 on drinks with caloric and non- caloric sweeteners, and Php 12.00 on those containing high fructose corn syrup (HFCS)," read the bill's explanatory note.

"The imposition of the SB tax stands on two primary objectives: revenue generation and curbing excessive consumption, associated with obesity and increased risk of non-communicable diseases (NCDs)," it further read.

However, since the existing SB tax lacked a necessary feature to adjust the tax schedule with concurrent inflation, its efficacy was eroded by a sustained rise in general prices and income through the years, the congresswomen said.

"That is, consumption of [SB] has gradually increased- undermining the initial impact of the tax in reducing excessive sugar intake. This contributed to the worsening problem of malnutrition, especially overnutrition, in the country," they said.

According to De Lima, “The ill effects of [SB] impact not only individuals and families. They also pose a significant economic burden on the country."

“In 2021 alone, the total economic cost to society of diabetes and cardiovascular diseases attributable to diets high in sweetened beverages amounted to a staggering total of PhP 11.18 billion,” noted the former senator.

“[The bill] is a win-win reform," Lagman said. "If enacted into law, it will improve our people’s health and quality of life, thereby reducing healthcare costs and productive losses even as it generates new revenues for nutrition and health programs at a time when fiscal space is constricting.”

Bag-ao, for her part, said: "The World Health Organization (WHO) has taken the issue of the negative effects on health of sugar-sweetened beverages so seriously that it has developed a stand-alone tax manual that serves as a practical guide that helps legislators craft policies towards the promotion and fulfillment of the right to health.

"Indeed, there is no sugar-coating it: sugar poses real risks to human lives,” she pointed out.