MANILA, Philippines -- The committee on ways and means of the House of Representatives has approved a bill that would impose an excise tax of P10 per liter of sugar-sweetened beverages.
Committee chairman Marikina Representative Romero Federico Quimbo called the bill a health measure that would, at the same time, raise some P34.5 billion in revenues for the government.
The bill inserts a new section, 150-A, in the National Internal Revenue Code of 1997 stating: “there shall be levied, assessed and collected on sugar-sweetened beverages per liter of volume capacity, an excise tax of P10.”
“The rate of tax imposed under this section shall be increased by four percent every year thereafter effective on January 1, 2017through Revenue Regulations issued by the Secretary of Finance.”
The bill defines a sugar-sweetened beverage as “a non-alcoholic beverage that contains caloric sweeteners/added sugar or artificial/non-caloric sweetener. It may be in liquid or solid mixture, syrup or concentrates that are added to water or other liquids to make a drink.”
These include soft drinks; soda, pop and soda pop; fruit drinks, punches or ades; sweetened beverages of diluted fruit juices; sports drinks; sweetened tea and coffee drinks; energy drinks; and all non-alcoholic beverages that are ready-to-drink and in powder form with added natural or artificial sugar.
The following are not classified as SSBs: 100 percent natural fruit juices; 100 percent natural vegetable juices; yogurt and fruit flavored yogurt beverages with pure fruit and vegetable juice or concentrate; meal replacement beverages (medical food) and weight loss products; and all milk products, infant formula and milk alternatives, such as soy milk or almond milk, including flavored milk, such as chocolate milk.
Nueva Ecija Representative Estrellita Suansing, principal author of the bill, called the measure a “much needed revenue measure that will cover and improve our social and health services.”
Suansing cited studies showing the consumption of sugar sweetened beverages increase the risk of developing health problems such as blood sugar disorders, obesity, diabetes, and other related diseases like bone fractures, hyperacidity, tooth decay and heart problems.
“We’ve come to determine that many of the diseases or non-communicable diseases emanate from the consumption of this readily- acceptable commodity (sugar sweetened beverages) especially by our children so the proceeds will serve not only as additional revenue for the government but more importantly to develop really a healthier population,” Quimbo said.
Among the means to achieve this goal, he said, are creating sources of potable water in schools and communities, and raising the educational awareness of the population about healthier lifestyles and eating.
Asked by AAMBIS-OWA Representative Sharon Garin about how much government spends on diabetes and other related diseases, Carmela Granada, Department of Health media officer, said based on PhilHealth claims, the government has spent P50 billion for diabetes-related diseases from 2009 and 2012.
She estimated that for diabetes alone, the government spends around P5 billion annually.
Representatives Raneo Abu (second district, Batangas) and Rodel Batocabe (AKO BICOL party-list) raised amendments to the substitute bill, particularly on percentage distribution of the health promotion fund from the excise tax collection on sugar-sweetened beverages.
In terms of allocation of the revenue collection from the excise tax on SSBs, the bill provides that 50 percent will go to the General Fund; 20 percent to the DOH for the provision of medicine and medical assistance to indigent patients with diabetes and or other related diseases through the Provincial or District Hospitals, and for health and wellness information campaign; 20 percent to the Department of Education to provide access to potable water in public schools (water fountain) and sports facilities and for the community-based obesity, diabetes, dental caries prevention campaigns and other diet-related health awareness programs using educational, environmental, policy and other public health approaches.
The remainder will go to the following : three percent to the Department of Interior and Local Government for its Sagana at Ligtas Na Tubig sa Lahat Program and Grassroots Participatory Planning and Budgeting Priority LGUs; two percent to the Food and Nutrition Research Institute for research and development program; two percent to the Bureau of Internal Revenue for tax administration; and three percent to the Food and Drug Administration under the DOH in pursuit of its mandate to ensure the safety, efficacy or quality of health products as defined by Republic Act 9711.
The bill prohibits mislabeling and false declarations of the caloric and non-caloric sweetener content of SSBs handled or manufactured for sale, offered for sale, distributed in commerce, or imported in the Philippines. Violators shall suffer the penalties provided under Section 38 of RA 10611, otherwise known as the “Food Safety Act of 2013.”
It also provides that manufacturers and importers of SSBs shall, within 30 days from the law’s effectivity and within the first five days of every third month thereafter, submit to the Commissioner sworn statements on the volume of sales for each particular brand of SSB sold at their establishments for the three-month period immediately preceding.
Manufacturers or importers who misdeclare or misrepresent any pertinent data or information shall be penalized by the summary cancellation or withdrawal of their permit to engage in business,
The FDA shall require all manufacturers and importers to state on the label that a caloric or non-caloric sweetener is added to the SSBs. It shall examine the SSBs to determine their caloric and non-caloric sweetener content as specified on the label before these are sold in the market.
The FDA shall also conduct random inspection of SSBs displayed in supermarkets, groceries or retail stores to determine compliance with the law.
House panel Oks bill for P10 excise tax on sugar-sweetened beverages
Lain nasad pangwarta sa Gobyerno. Adto daw ni padulong sa health services.
House panel Oks bill for P10 excise tax on sugar-sweetened beverages
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