House awaits proposal to tax junk food, sweet drinks
THE House Committee on Ways and Means is waiting for the proposal of the Department of Finance (DOF) and Department of Health (DOH) on junk food and sweet beverages tax.
According to committee chairman Albay Representative Joey Salceda, a measure will be crafted based on the proposal of the two agencies and this will undergo scrutiny.
And while waiting, the committee is “still studying the best form of a junk food tax, or whether to do it at all.”
“We have not received the proposal yet. But when we do, it will go through the usual tests the committee applies. Who pays for it? What are its macroeconomic impacts? What are the costs and benefits? What are other countries doing? And what do we do if something goes wrong?” Salceda said.
Salceda added that the committee has also not received “a formal bill from the DOF on sweetened beverages.”
“The decision of course will depend on data. We are just in the median of obesity rates in the region, while having the highest sweetened beverage levies in ASEAN,” he said.
Earlier, the DOF said it is considering filing a proposal to the Congress about increasing the taxes on junk or salty food as well as sugary beverages.
While the solon is supporting the proposal he stressed that the committee will prioritize tax measures “that are clearly progressive and hit the rich first.”
Salceda explained that the House tax panel will discuss “motor vehicle user taxes, especially on heavier cars; and luxury goods taxes first” before it tackles taxes on food.
“As for salt, we do exceed the 2g per day of sodium recommended by the World Health Organization. So, there is cause for government-led efforts to reduce consumption. But, we are also looking at research, and as for salt, it appears that the highest proportion of excess salt in diets come from added salt in food and sauces – so not necessarily ready-to-eat junk food,” he said.
“In that sense, taxation might not be the best measure. We will also look at inflationary impact – because there will definitely be price implications on taxes on food,” Salceda further explained.
Salceda said that the House tax panel will also consider “whether we are in line with the Medium-Term Fiscal Framework of the Marcos administration.”
“If deficit and debt figures are projected to be significantly higher than expected, then we will need fiscal consolidation efforts. That may include new taxes.”
“Of course, we will also look at whether there are widely available and affordable alternatives. That’s why we are working with the Department of Social Welfare and Development to create a food stamp program that will make cheap healthy food available to underprivileged families.”
