THE Federation of Philippine Industries (FPI) said there is no basis for the health claims behind the proposed sugar-sweetened beverage tax, adding that the measure damages the interests of the poor.
FPI Chairman Jesus L. Arranza said in a news conference in Makati City that the proposed tax, which was filed in part as a health measure, to deter obesity and diabetes.
Mr. Arranza added that there is “no local study” that links sugar and syrup intake to lifestyle diseases. He said diabetes and obesity are brought on by sedentary lifestyles, not just through dietary choices.
The FPI has said that such a tax will raise the price of sweetened drinks by 25% to 50%, affecting small retailers and the C,D,E classes who are the biggest consumers of these beverages.
Citing the 2016 Nielsen Survey, Mr. Arranza said 84% of sellers of such beverages are small retailers who account for about 40% of the inventory in that product category.
Meanwhile, it cited a Food and Nutrition Research Institute study on food intake for those aged 19-59 shows that sugar and syrup accounted for 1.6% or 12.3 grams of the daily diet, while rice takes up 42.2% or 332.2 grams.
“Considering that the poor, where many of them are working in manual labor so the 1.6% cannot give them energy. Truth be told, there are more diabetics among the rich than in the poor,” Mr. Arranza said.
Further, FPI said in a statement that the tax will hurt investment and “compel a downsizing in operations” resulting in multi-sector job losses.
The Beverage Industry Association of the Philippines has said that the price increase brought about by the tax will also cause expected volumes to fall by 30% to 75% and affect more than 130,000 workers.
If passed, House Bill No.292 will increase beverages sweetened by sugar or syrup by as much as P10 per liter, according to the version approved by Congress in June. The proposed tax is part of the Tax Reform for Acceleration and Inclusion program. — Anna Gabriela A. Mogato
