The government should consider a higher tax on sugar-sweetened beverages (SSBs) to offset inflation and fund the “First 1000 Days Grant,” which supports the nutritional needs of Pantawid Pamilyang Pilipino Program (4Ps) members, including lactating mothers and children under age of two, according to one of the co-founders of Action for Economic Reforms (AER).
“The inflation rate has been quite high in the past few years but the tax rate for the sweetened beverage tax is fixed, P6 per volume a liter. So, the real value of the six pesos since the imposition of the tax has gone down,” Filomeno S. Sta. Ana III, coordinator of AER said in an interview during the 2nd day of the Department of Health (DOH) media conference in Baguio City on Wednesday.
To ensure the effectiveness of tax rates and increase revenue, Mr. Sta. Ana cited ANAKALUSUGAN Party-list Representative Ray Florence Reyes’s proposal on the tax increase.
“So, a rate of higher than P9, perhaps even P12 will be good, a tax structure that will include the feature that will automatically index the tax inflation is also most welcomed, that’s very similar to the design of the tax on tobacco and alcohol,” he said.
“We need new revenues in light of the narrow fiscal space we have, in light of the pressure to spend for important development projects, and the problem in nutrition.”
The revenue from a higher SSB tax could be the ideal funding source for the “First 1000 Days Grant” model, Mr. Sta. Ana said, which requires a budget of P2.6 billion to P2.7 billion as it rolls out in 2025, according to the Department of Social Welfare and Development (DSWD).
“Where do we get the resources (funds), and it is most sensible that such new resources be obtained from a tax like the sweetened beverage tax, (as it) is related somehow to the issue of nutrition,” Mr. Sta. Ana said.
He also emphasized that the government should not hesitate to impose pro-health taxes, such as an increased tax on sugar-sweetened beverages (SSBs), as these have been proven to reduce obesity concerns and generate revenue for health initiatives and economic growth.
“Let’s do it, let’s push for sweet and beverage tax, let’s push for good taxes… not all tax will be harmful to the economy at this time, increasing revenues at this time will be contributing to GDP growth, will be contributing to expansions of investment and growth,” Mr. Sta. Ana said. – Edg Adrian A. Eva
