Gov’t told: Sugary drink tax hike must be science-based

MANILA, Philippines — One of the largest food manufacturers in the Philippines expressed its openness to the government’s plan to raise taxes on sugary drinks, but emphasized that any increase should rely on scientific evidence and consider the implications for consumers, not just the government’s revenue.

“We are not against a policy that helps encourage Filipinos (to adopt) healthy living,” Nestlé Philippines senior vice president Jose Uy III said at a roundtable on Thursday. “That is part of us and our purpose.”

READ: Tax hikes eyed to offset relief for workers, small biz

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However, Nestlé said any tax policy involving food and beverages should also take into account its potential effects on nutrition and affordability.

“Any major policy that is being created by legislators or the government has to be scientific or evidence-based, and it has to be consultative,” Uy added. “They must also conduct regulatory impact assessment…and take into account that food should be accessible and affordable.”

This comes as the Department of Finance (DOF) weighs raising the excise tax on sweetened beverages to P20 from P6 per liter for those using caloric or noncaloric sweeteners, and to P40 from P12 per liter for those containing high-fructose corn syrup.

Additionally, the proposed increases aim to offset the P326.92 billion in foregone revenues that the Department of Finance estimates will result from President Marcos’ proposed tax relief for workers and small businesses. These increases accompany higher taxes on tobacco and alcohol, as well as on single-use plastics and wealth.

Any changes to the sugary drink tax could affect a broad range of Nestlé products, given its extensive portfolio of beverages commonly consumed by Filipino households. These include Nescafé coffee, Bear Brand and Nido milk products, Milo and Nestea beverages.

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Likewise, Edelwise Sicat, corporate nutritionist lead for Nestlé Philippines, said a review of the policy should also examine the broader Filipino diet and the factors behind the prevalence of diabetes in the country.

Diabetes hits 5M

According to the International Diabetes Federation, nearly 5 million adults in the Philippines have diabetes, equivalent to about 7.5 percent of the adult population.

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Still, Sicat argued that we should not attribute the prevalence of diabetes solely to sugar consumption.

“There are many diabetics because we lack protein and fiber,” she explained. “That is because we often eat refined carbohydrates.”

Meanwhile, Uy stated that they have already held discussions on the proposed tax changes with the Philippine Chamber of Food Manufacturers Inc., which submitted its position on the matter.

Earlier, the DOF said it plans to seek congressional approval for the higher excise tax measures, which it projects could raise P518.71 billion between 2027 and 2030. /pai