LP "TRES MARIAS" TARGET SWEET DRINKS WITH NEW TAX BILL
Quezon City – Representatives Cielo Krisel B. Lagman, Kaka J. Bag-ao, and Leila M. De Lima have introduced House Bill No. 5003, seeking to amend the National Internal Revenue Code and increase the excise tax on sweetened beverages (SBs). The bill aims to address the country's rising cases of malnutrition and non-communicable diseases, while also generating additional revenue for health and nutrition programs.
The proposed legislation seeks to update the tax rate on sweetened beverages, expanding the tax scope to include previously exempted products such as 3-in-1 coffee, flavored milk, and fermented milk. It also includes an annual indexation clause to adjust the tax rate with inflation, ensuring its continued effectiveness.
Under the bill, the tax on sweetened beverages using purely caloric or non-caloric sweeteners would increase from Php 6.00 to Php 20.00 per liter. Sweetened beverages using high fructose corn syrup would be taxed at Php 40.00 per liter, up from the current Php 12.00. Additionally, a tax of Php 6.00 per liter would be levied on flavored milk, fermented milk, flavored non-dairy milk beverages, and all sweetened coffee products.
The bill proposes allocating 50% of the revenues generated from the SB tax to the Department of Interior and Local Government (DILG). These funds would be divided among the provinces, with 40% earmarked for nutrition-specific programs targeting children ages zero to five years old and pregnant and lactating women, and 10% for nutrition-sensitive interventions such as water, sanitation, and hygiene programs. The remaining 50% of the revenue will go to PhilHealth and medical assistance programs.
The lawmakers emphasize the need for urgent interventions to address the worsening situation of malnutrition and non-communicable diseases in the Philippines. They believe that an enhanced SB tax policy, coupled with targeted health and nutrition programs, can help reduce the consumption of sweetened beverages, improve public health, and generate funds for essential interventions.
| Nel Adtoon, Simpleng Duon, Bicol Net TV
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