LEGISLATORS on Monday said the excise tax regime on sweetened drinks needs to be properly enforced, after it found revenue shortfalls and the non-implementation of programs for sugar farmers.
In a hearing, Nueva Ecija Rep. Estrellita B. Suansing said there is a “significant deficit” in actual performance against targets for sweetened beverages because enterprises began using high-fructose corn syrup, a shift that was not easily verified and may be subject to misdeclaration.
During the first year of the excise tax’s implementation in 2018, the targets were P52.03 billion for the Bureau of Internal Revenue and P2.45 billion for the Bureau of Custom. Actual collections were P39.77 billion and P2.82 billion respectively.
“In total there is a shortfall of P12.26 billion which is equivalent to 37% of the total target,” she said.
House Committee on Ways and Means Chairman Jose Ma. Clemente S. Salceda said part of the panel’s recommendations is for the Food and Drug Administration to improve its product testing and post-market surveillance.
“Now, the Food and Drug Administration is procuring new machines to verify sugar content in response to our Committee’s pressure,” he said.
Ms. Suansing said because the excise taxes on sweetened beverages discourage sugar consumption, part of the law provides that the taxes collected should fund programs to help sugarcane farmers via the Sugarcane Industry Development Act.
She added that the Department of Budget and Management cited the low absorptive capacity of the Sugar Regulatory Administration (SRA) in receiving the revenue from the excise taxes.
“We encourage SRA to increase their absorptive capacity, because this was one of the reasons why (the farmers) are not benefitting from the revenue of the excise tax on sugared/sweetened drinks and beverages,” she said. — Gillian M. Cortez