Tax on sugary drinks needs adjustment think tank

The government should consider modifying the rates on sugar-sweetened beverages (SSB) as the tax measure has weakened since its implementation.

- LOUISE MAUREEN SIMEON

According to the latest policy brief of the Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives, the initial impact of the SSB tax has diminished due to sustained inflation and ever-changing market dynamics.

As part of the tax reform package of the Duterte administration, the Philippines in 2018 began slapping a P6 per liter tax on SSBs made with caloric or non-caloric sweeteners as part of efforts to curb obesity in the country.

It also included a P12 per liter tax on those made with high-fructose corn syrup. The two-tiered levy resulted in at least 13 percent to as much as 26 percent increase in the cost of beverages.

Six years later, however, CPBRD said the demand response to the SSB tax has declined over time which means that its capacity to elicit desirable health outcomes is likely only in the short-term.