DOH backs tax hike on sweet drinks

MANILA, Philippines — The Department of Health (DOH) on Monday backed a proposal to raise taxes on sugary drinks during a congressional hearing. Health Assistant Secretary Lester Tan said his agency supports an increase in the excise tax on sweetened beverages—now set at a flat P6 to P12 per liter depending on sweeteners—to reduce consumption. Tan, however, did not provide specifics on how much the tax should be increased, saying that the DOH would leave the decision to Congress. “We support the increase of excise tax on sweetened beverages to reduce consumption and promote health,” Tan told lawmakers. He said that the DOH has been advocating for the imposition of excise taxes on sweetened beverages since 2013 as part of its campaign to combat NCDs. The Philippines implemented a tax on sugar-sweetened beverages in 2018 as part of the Tax Reform for Acceleration and Inclusion (TRAIN) Law. The tax is P6 per liter for drinks using caloric and non-caloric sweeteners and P12 per liter for drinks using high fructose corn syrup. However, health advocates and some lawmakers have argued that the current tax rates are not high enough to significantly curb consumption. "We need to increase the tax rates to make sweetened beverages less affordable and encourage people to switch to healthier options," said Rep. Ruffy Biazon, who has filed a bill seeking to increase the excise tax on sweetened beverages. Biazon’s bill seeks to increase the tax to P10 per liter for drinks using caloric and non-caloric sweeteners and P20 per liter for drinks using high fructose corn syrup. Tan said that the DOH would also support the proposed increase in the tax rates. "We believe that a higher tax rate would be more effective in reducing the consumption of sweetened beverages and in turn, reduce the incidence of NCDs," he said. He added that the DOH would also support the use of the additional tax revenue to fund health programs and services. "We are confident that this measure will contribute to improving the health of Filipinos and reducing the burden of NCDs on our healthcare system," Tan said. Source: Inquirer NewsInfo