Albay Rep. Joey Sarte Salceda has said his committee is considering proposals by the Department of Health (DOH) to raise excise taxes on the so-called “ sin products” which include sweetened beverages, cigarettes, alcohol, and novel tobacco products such as vapes.
Salceda, chair of the Committee on Ways and Means, was reacting to recent statements by the DOH that it is pushing for higher taxes on sweetened beverages and junk foods, or non-nutritious foods. Salceda said his committee will seriously study the DOH proposals.
“We will definitely consider the proposals for higher taxes on sweetened beverages. It might help reduce overall sugar demand and help us manage the supply deficit and reduce the need to import,” Salceda said in a statement.
“It seems like there is space, especially since sugary drinks increased prices year-on-year by just 3.9 percent last August.”
Citing official statistics, Salceda said sugar prices increased 26 percent over the same period. “So, obviously, there is very little pass-through, especially since sugary drinks use imported bottler’s grade sugar, the wholesale price of which is just P20/kg,” he said.
Salceda emphasized however that “the committee will study the impact, especially since revenue collection has already flatlined to the 32-35 billion per year mark. We want to see whether it will really have an impact on obesity.”
“Definitely, my office will pursue more regulation, taxation aside. Definitely, we are going for a ban on sugary drinks in public and private grade schools,” Salceda said.
However, Salceda said his committee is not in favor of raising taxes on junk food.
“We are disinclined towards a junk food tax. It seems that global best practices that really work are closer to regulation than taxation, especially on salt levels. The Singapore model is industry and government working together to lower salt levels in food.”
He said “the better approach there might be to restrict sales in schools where children have greater access to them.”
“Besides, defining what junk food is will definitely be a challenge.”
“We will still study taxes on junk food, but we lean towards regulation rather than taxation.”
Salceda also said that the committee is still open to higher taxes on cigarettes, alcohol, and novel tobacco products such as “vape.”
“We will definitely consider the proposals. In fact, I am already preparing a bill on higher taxes on vape products, especially now that global jurisprudence already acknowledges the harm in vaping,” Salceda said, after a tentative agreement on a multi-state settlement with JUUL Labs, a vape product manufacturer, worth over $438.5 million.
“It is now acknowledged in courts abroad that vaping has harms. So, there is an impetus to further discourage consumption there.”
He stressed that his committee will also study cigarette and alcohol taxation levels. “I have already formed a study group with civil society and government agencies on the matter, to craft ideal rates and taxation design.”
“Again, we will consider all proposals, and all counter-arguments, including illicit trade, jobs losses, inflationary impact, as well as what works in other countries. In principle, the committee believes in health taxes, especially to fund universal health care.”
