Planned excise tax on junk foods is ‘dead’ — Salceda

The House of Representatives has junked a government proposal to impose excise tax on salty and junk foods.

Albay Rep. Jose Salceda said in a Wednesday forum at the Philippine Stock Exchange the proposed tax on junk foods is difficult to enforce while the proposed tax on sugar drinks will likely aggravate malnutrition in the country, with little impact on obesity.

“It is gone. It is dead,” Salceda said when asked about the government’s proposed tax on junk food and sweetened beverages.

Salceda also noted that he has not even received a copy of the proposal.

Under the proposal, the government plans to impose P10 per 100 grams or P10 per 100 milliliters tax on pre-packaged foods lacking nutritional value, including confectioneries, snacks, desserts and frozen confectioneries, that exceed the Department of Health’s specified thresholds for fat, salt, and sugar content.

The proposed tax measure is expected to generate additional P76 billion in revenues for the government during the first year of imposition and reduce consumption of junk food by 21 percent.

Analysts said the junking of the proposed excise tax on salty snacks is expected to specifically benefit food manufacturing giant Universal Robina Corp. and Monde Nissin Corp., which are producing salty snacks, biscuits and noodles.

Salceda said the luxury goods tax was also junked due to proposed tourist VAT (value added tax) refund.

Congress was pursuing the planned imposition of VAT on goods sold online, while the VAT on digital services has been approved by the Lower House and is now pending in the Senate.

At the same time, the House Committee on Ways and Means has also approved the proposed increase in motor vehicle user’s charge while proposed excise tax on pick-up trucks to refund tax exemptions of e-vehicles were also being considered.