Filipino House Likely to Approve Soda Tax

The bill would add a 10% ad valorem tax on carbonated beverages.

November 16, 2015

MANILA, Philippines – The Filipino House of Representatives is poised to pass a 10% tax on carbonated drinks, such as soda, The Inquirer reports. Ways and Means Committee Chair Marikina Rep. Miro Quimbo said that the bill will be approved before the Christmas break.

The committee has already okayed the measure that would add a P10 tax per liter on sweetened drinks, with the money generated from the tax earmarked for health and other government initiatives. Quimbo said the bill had allies in the Senate, including Sen. Sonny Angara, who chairs the Senate Ways and Means Committee. “Angara…said they’ll also take it up after we’ve passed it,” said Quimbo.

The bill would lower the consumption of sugar, as well as pour up to P34 billion in funds annually for the government. “We’re passing this primarily for its impact on health. Our hope is that people will start drinking water or milk, and developing potable water systems and having access to milk that’s more affordable. That’s where the revenues from the bill will go to,” said Quimbo.

Natural fruit and vegetable juices, milk products, meal replacement drinks, weight loss drinks or yogurt drinks would not be subject to the tax. The tax would jump 4% annually starting in 2017.

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