THE United Sugar Producers Federation (UNIFED) is opposing the call to allow industrial users or manufacturers to directly import their sugar needs as a compromise to the government’s plan to increase duties and broaden the tax base for sweetened beverages.
UNIFED president Manuel Lamata appealed to President Ferdinand Marcos Jr. to disregard Finance Secretary Benjamin Diokno’s remark describing sugar trade liberalization as a “reasonable compromise” in lieu of the planned higher taxes on sugary drinks.
Lamata said the group is “totally against the move of Diokno to liberalize importation in favor of a few industrial users.”
The Department of Finance is planning to increase the beverage tax rate under the Tax Reform for Acceleration and Inclusion (TRAIN) Law to P12 per liter, regardless of the type of sweetener used, remove exemptions, and index the rate by four percent annually.
Currently, the TRAIN law mandates a P6 per liter excise tax on beverages using caloric and non-caloric sweeteners, and P12 per liter tax on beverages using high-fructose corn syrup.
With higher tax rate and broader base, Diokno had said that “to me, a reasonable compromise is… okay tax namin kayo, pero we will allow you to import your sugar.”
Under the current system, the Sugar Regulatory Administration (SRA) regulates the importation of sugar and determines the volume to be imported after assessing the local industry’s capability to satisfy the country’s consumption demands.
Lamata said “the move will kill the (livelihood of) more than five million Filipinos who are dependent on the sugar industry.”
“Is Diokno prepared to give livelihood to these five million industry stakeholders?”
“The Finance secretary is ill-advised,” Lamata said, adding that beyond the goal of raising taxes, “Diokno should also think of the consumers or the general public who will also be affected as these industrial users will surely pass on the additional taxes to their consumers.”
Lamata said UNIFED is hoping that the President will not endorse this plan which was never even done in consultation with the sugar industry. (GMA Integrated News)
