A trade association of local food caterers is opposing the government’s plan to increase taxes on sweetened beverages, adding another private sector group to the ranks of local organizations pushing back against a measure that is seen as worsening food inflation in the country.
The Food Caterers Association of the Philippines (FCAP), an umbrella organization of small, medium, and large catering companies in the country, expressed their concerns about the proposed tax increase, stating that it would lead to price hikes in the beverage products they offer. These increased costs would then be passed on to consumers.
According to Felix Nino Asuncion, secretary of FCAP, this tax increase will have a ripple effect on consumers and disrupt the food industry as a whole. He also emphasized that this impact would not be limited to the catering industry but would also affect other businesses like restaurants and coffee shops.
Asuncion further explained that implementing the tax increase at this time, when businesses are still recovering from the pandemic, would be detrimental. He stated that they are currently preparing a position paper to be submitted to relevant government authorities, including the Sugar Regulatory Administration (SRA), to express their concerns and propose alternative solutions.
Additional P76B tax revenues
The Department of Finance (DOF) and the Department of Health are planning to increase the tax for sweetened beverages to P12 per liter, double the current rate. This increase would apply to all kinds of sweeteners, not just high-fructose corn syrup. The government projects an additional P76 billion in tax revenues during the first year of implementation, as well as a 21 percent reduction in consumption.
However, several trade groups representing both big and small businesses have urged the government to reconsider this tax policy. They warn of its negative impact and question whether it will truly lead to better public health outcomes.
The Philippine Association of Carinderia and Store Owners (Pasco), for example, recalls that their sales plummeted by 40 percent when the tax measure on sweetened beverages was first implemented in 2015. Elilyn Gadia, national president of Pasco, highlighted that new taxes burden small businesses and ordinary consumers.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
