The Senate committee on ways and means said part of the additional revenues from the proposed tax reform should be allocated to strengthen the government’s employment assistance to workers who may be affected by the tax reform.
The Beverage Industry Association of the Philippines said during a hearing on August 24 that around 130,000 jobs of the beverage industry would be affected by the proposed excise tax on sugar-sweetened beverages.
Finance Undersecretary Karl Chua. However, said about 500,000 jobs would be generated annually by the Build, Build, Build infrastructure program that would be funded by fresh revenues from the proposed new taxes.
The Labor Department under a program provides emergency employment to workers who were laid off or terminated as a result of the closure of an establishment and to self-employed individuals who have lost their livelihood, including farmers and fishermen.
Labor provides a payment of salary equivalent to the prevailing minimum wage in the area or locality, and free skills training to prepare them for self or wage employment.
“Employment assistance for workers who will be affected by the tax reform should be included in the earmarking provision,” said committee chairman Senator Edgardo Angara Jr.
He added part of the additional revenues from the proposed excise tax on sugar-sweetened beverages, estimated at P47 billion, should also be used to develop and sustain feeding programs to address malnutrition, widen access to potable drinking water supply and expand Philhealth’s dialysis package.
House Bill 5636 plans to impose a P10-excise tax on every liter of sugar-sweetened beverages, which include sweetened juice drinks, tea and coffee; all carbonated beverage with added sugar; flavored water; energy drinks; sports drinks; powdered drinks not classified as milk, juice, tea and coffee; cereal and grain beverages; and other non-alcoholic beverages that contain sugar.
Angara said imposing excise tax based on sugar content would be more reasonable and more effective in encouraging Filipinos to consume healthier drinks.