Beverage giants such as Asia Brewery Inc., Coca-Cola Bottlers Philippines, Inc. and the San Miguel Brewing Group are opposing proposals in Congress seeking to impose an excise tax on sugar or syrup used on carbonated drinks.
The companies and other members of the 15-member Beverage Industry Association of the Philippines (BIAP) claim that taxes on sugar used on carbonated drinks would be detrimental to the economy
Quezon Rep. Danilo Suarez has filed House Bill 595 which proposes to tax syrup used on soft drinks. The bill proposes a 10-percent value-added tax on flavored or colored syrups used for soft drinks.
However, in a position paper submitted to Congress, the BIAP said the proposed taxes would have a negative impact on the economy and would outweigh whatever positive gains may be derived from it.
“It poses a grave threat to the sugar industry and other allied industries,” the BIAP said.