Philippines Eyes Tripling Sugary Drink Tax to Combat Lifestyle Diseases

MANILA, Philippines — The Department of Finance (DOF) is pushing to raise taxes on sugary drinks to at least three times their current rate to discourage consumption. The finance department said Thursday, September 17, that its goal in imposing higher taxes on sweetened drinks is not only to generate revenue, but also to address and curb lifestyle diseases like diabetes, obesity and kidney issues among Filipinos. “Gusto natin bawasan o i-discourage ang pagkonsumo ng mga sweetened beverages kasi nakita natin, at sabi din ng mga eksperto din sa health sector, na talagang nagdudulot ito ng mga sakit,” DOF Assistance Secretary for Revenue Operations Group Euvimil Nina Asuncion told dzMM in an interview. (We want to reduce or discourage the consumption of sweetened beverages because we saw, and even the experts in the health sector said, that this causes diseases.) Based on the Philippine Statistics Authority’s (PSA) report released June 30, diabetes ranked fifth among the leading causes of death in the Philippines in 2026, with 2,795 recorded deaths as of February. Meanwhile, the National Nutrition Council said on September 10 that 43% of Filipino adults are obese. The government currently imposes a P6 to P12 per liter excise tax on pre-packed sweetened drinks under Republic Act No. 10963, or the Philippine TRAIN Law. The DOF, however, proposed to raise these taxes from P6 to P20 per liter for non-caloric and caloric beverages, and from P12 to P40 for drinks using fructose corn syrup. Should the finance department’s proposal be approved, retail prices of carbonated soft drinks, pre-packed teas and other ready-to-drink juices that are widely available in the market could also increase. But, unlike previous measures, the DOF is also currently proposing that these excise taxes on sugary drinks be adjusted by around 5% every year. “Gusto talaga natin na imbes na magkonsumo sila ng softdrinks…iinom sila ng healthier na alternative,” Asuncion said. (We want them to consume healthier alternatives instead of consuming softdrinks.) The collected taxes from these products are intended to support Universal Health Care, which enrolls all Filipinos into the country’s national health insurance, according to Asuncion.