Coca-Cola Femsa said Thursday it may revisit its investment plan in the Philippines, if Congress approves the proposed tax on sugar-sweetened beverages in its original form.
Coca-Cola Femsa Philippines director of legal and corporate affairs Juan Lorenzo Tañada said while the company was still committed to deliver $1 biĺlion worth of investments until 2020, the proposed tax would have an impact on its decision.
“It will have an impact on business. The industry is very concerned about the bill. We are evaluating every possible risk in the sense that we are strong believers in the Philippine economy,” Tañada said in a forum hosted by the European Chamber of Commerce of the Philippines and the Beverage Industry Association of the Philippines in Pasay City.
Beverage industry players expressed concern over the proposed tax measure and asked the government to delay by at least a year the imposition of taxes, or once the issues on health concerns and revenue generation were resolved.
Tañada said the industry wanted to have all the facts collected to help legislators move forward on the tax measure. He said the bill, in its present form, would not really address health issues but would hurt the poor.
Coca-Cola Femsa said its market was mainly composed of the C, D and E income groups. Imposing the tax in its original text would be tantamount to depriving the public of their democratic right to drinking/food preference, it said.
“As investors in this country, I’d like to believe that our contribution to the economy will be taken into consideration. The P10-per-liter tax is quite dangerous for us and the consuming public. We need something sustainable. We need to ensure that investors will have a fair return in their investments. We’re not against taxation per se, but we are against discriminatory taxation,” Tañada said.
ECCP president Gunther Taus said the taxation on sugar-sweetened beverages under House Bill No. 5636 or Tax Reform for Acceleration and Inclusion would render the prices of powdered juices, 3-in-1 coffee, iced tea, energy drinks and soft drinks prohibitive to low-income families.
Taus said the bill would not guarantee that people would stop consuming sugar-sweetened beverages nor would it solve the problem of obesity.
“It’s in the lifestyle and not the taxes the government plans to impose. As long as we don’t advertise more for proper nutrition and proper lifestyle, we’ll never rid of obesity. Is it necessary to impose tax on sugar to make up for the shortfall in tax collection. Really, the tax on sugar is something that should not be imposed,” he said.
Among the members of BIAP are Pepsi Cola Products Philippines Inc., Coca-Cola Philippines, Coca-Cola Femsa, San Miguel Corp., Mondelez Philippines, Universal Robina Corp., Asia Brewery, Nestle Philippines, Liwayway Corp., Kopiko, Del Monte Philippines, Asiawide Refreshment Corp. and Zest-O Corp.