Beverage companies are complaining about the sugar tax slapped by the government, but I was surprised to hear that the recent sugar tax collection has been anemic and not quite what fiscal authorities wanted to see.
The Bureau of Internal Revenue (BIR) only collected less than P1 billion in sugar tax for the second quarter of the year compared to at least P6 billion recorded during the previous quarter.
This is a long way to go considering that the total sugar tax goal for the entire 2018 is roughly P50 billion.
The new tax law slapped an excise tax of P6 per liter on drinks using sugar and artificial sweeteners, and P12 per liter for drinks that use high fructose corn syrup.
What’s the reason behind the anemic tax collection?
The Implementing Rules and Regulations has yet to be released. Perhaps, that is one reason.
The IRR, which will come in the form of a revenue regulation, should have pegged the tax rates for sugar products between a low of P6 to a high of P12 per liter.
But the BIR is still waiting for inputs from the Food and Drugs Administration before it can finalize the IRR.
On the other hand, BIR collections are on track for alcohol, tobacco, automobile, petroleum, and minerals.
For tobacco alone, the favorite “whipping boy” for tax hikes, the BIR already collected P24 billion in excise tax just for the first two months of 2018 against its whole-year target of P120 billion. If the two-month trend continues, tobacco tax-take by year-end will reach P144 billion.
The numbers don’t lie. And it seems that while government has been very aggressive in taxing to the max “sin products,” collecting soda or sugar tax from beverage companies and other peddlers of sugary products has been off to a slow start.
Perhaps this could be the strategic reason why the tobacco tax is again included in TRAIN 2?
Against this backdrop, while more tax hikes are expected, the government should have equally strong parallel efforts against smuggling, whether it’s cigarettes, sugar, or any other product.
Easing traffic
Readers get really passionate when I write about the monstrous traffic jams in Metro Manila. It’s obvious that nobody is spared, whether one is commuting and navigating through our hellish public transport system or driving on our paralyzed roads.
One reader, Sam Lim suggested that on the issue of right-of-way, the basis for the value or amount to be paid by the government — which is often the source of conflict between the government and property owner — should be fair to all. The real and property taxes and all other related factors such as opportunity costs must be considered.
Flexible working hours, practiced in some parts of Europe, will also help ease traffic during rush hours, she said.
Malls should also be opened and closed at a later time and I think they shouldn’t be in already high traffic areas.
In other countries, consumers usually have to drive a bit more to get to the malls. They are not situated in areas vulnerable to monstrous traffic jams.
A bicycle super highway
Architect Kevin Espina, meanwhile, proposed a bicycle super highway that will utilize the Pasig-Marikina River System as a travel corridor.
Kevin said the area has the ability to connect northeastern Metro Manila — Marikina-QC-Pasig — all the way to the southwestern part — Taguig-Makati-Manila.
“My idea is to have an expressway along the river — not for vehicles, but for bicycles and pedestrians. This will allow cyclists and pedestrians to bike or walk all the way from their place of residence to the business and school districts,” Kevin says in a detailed presentation.
Dubbed as the Padyak Expressway, Kevin said there could be feeder nodes on various points from Batasan, Tumana, UP-Balara, Riverbanks, Manggahan, Rosario, Bagong Ilog, Pateros, BGC, EDSA, Circuit, Sta. Mesa and Intramuros. The feeder nodes, he said could have vehicular parking facilities and bikers may enter at any point along the Padyak Expressway. They can have their bikes or they can rent from various stations in the corridor, which he dubbed as the exit nodes where there are parking for bikes and locker facilities, which may be sophisticated versions of mall lounges.
Those in QC, Marikina, or Pasig need not worry about how to get all the way to Makati.
Bikers and pedestrians will be totally protected, fenced-off from other motor vehicles.
“There will be no intersections or traffic lights to slow you down. The expressway will be non-stop, and naturally grade-separated from other roads,” Kevin said.
Those with cars can park at the nearest parking facility, bring down their bike, and pedal all the way to their destination.
Those without bikes could enter the expressway, rent a bike, then leave the bike at their destination, he said.
He said this ensures greater mobility by providing connections to mass transit lines and major roads to get to further destinations
“This bicycle superhighway has been an advocacy of mine since 2016. I strongly believe this infrastructure will greatly help reduce traffic in Metro Manila, and revive the Pasig RIver. I’m not after financial reward or recognition. My ultimate goal is for a government agency or a big businessmen to pick it up and turn this project into a reality,” Kevin said.
Iris Gonzales’ e-mail address is eyesgonzales@gmail.com