Beverage company exec: ‘Sweet tax’ can affect Filipino farmers
MANILA, Philippines — The first package of the government’s Tax Reform for Acceleration and Inclusion (TRAIN) bill is now in effect, spurring opposition from beverage companies and consumers.
According to a Philstar.com report, package one of the TRAIN imposed a tax of P6 per liter for beverages using caloric and non-caloric sweeteners and P12 per liter for beverages using high fructose corn syrup.
Tax-exempt are all milk, 3-in-1 coffee, 100 percent natural fruit and vegetable juices, meal replacement and medically indicated beverages. Beverages that used coco sugar and stevia are also excluded from taxation.
Under the bill, tax is imposed on sugar-sweetened beverages as a revenue-generating and healthcare measure — a provision that 300,000 Filipinos vehemently object to, according to a letter that the Philippine Association of Stores and Carinderia Owners’ (PASCO) sent to President Rodrigo Duterte, another Philstar.com report says.
“PASCO said taxing sugary drinks would be a big blow to a micro-industry of poor sari-sari stores and carinderia owners who rake in 40 percent of their daily income from selling liquid refreshments,” Philstar.com’s report continues.
Besides price increase on sugary drinks, the added tax can affect the local farmers local beverage companies get their resources from, said Gretchen King, Group Product Manager for Filipino beverage label Locally produced by food and beverage company NutriAsia.
King echoes the sentiment of farmers and sugar producers from the province of Negros Occidental, known as the "Sugarbowl of the Philippines" that supplies more than half of the nation's sugar.
According to King, their beverage brand Locally was created in 2015 to help promote Philippine fruits among the youth as the juice line is made from local fruits sourced from different Philippine regions such tamarind from Batangas, Pangasinan, and Bulacan; calamansi from Isabela, Tarlac, and Nueva Ecija; dalandan from Laguna and Mindoro; guyabano from Cebu and Misamis Occidental; pomelo from Davao; and siniguelas from the Negros provinces.
Besides its blended juice drinks, the brand also offers Merci Buco, said to be the first Eco-Certified pure organic coconut water in the Philippines that comes in buco pandan and buco lychee variants.
Although made of natural juices, beverages like Locally still need sugar to neutralize the acidity and sharp taste of Philippine fruits, King said. Since sugar is an important ingredient in commercial beverages, King thinks sweetened drinks should not be taxed.
Sugary drinks are usually named as a culprit in rising obesity, diabetes and cardiovascular disease cases in the Philippines, but according to King, a little sugar in beverages makes the drinks enjoyable to the youth, enabling them to still reap the nutrients found in fruits.
“Filipino millennials are becoming more patriotic and supportive of local products. They are also growing increasingly aware of their environment and wellness, which is why they look for healthier drink alternatives,” she explained.
To make millennials more aware of the country’s local fruits, the brand has recently collaborated with mixologist Kalel Demetrio, also known as “Liquid Maestro,” in concocting local fruit juices, which were then served in a fruit truck. While enjoying drinks, millennials were entertained by singer-guitarist Keiko Necesario.
“The fruit truck is our modern take on the ice cream truck, which makes us jump for joy when you see it on the road or hear its bells and music play. We want Filipinos to feel that way but at the same time, celebrating our local fruits and juices, and basically just celebrating being a Pinoy,” King said.
