Philippines Should Enact Soda Tax

June 12, 2015 Taxation in Philippines

MANILLA – The Philippines should proceed with enacting a tax on the sale of unhealthy beverages, according to the IMF.

On June 10th the representative of International Monetary Fund to the Philippines Shanaka Peiris revealed that the IMF supports the government’s proposal to raise the taxes applied to the sale of soft drinks and other sugar sweetened beverages.

The tax, which was originally proposed by the Department of Health, would be levied at 10 percent on the sale of carbonated sweetened beverages sold in bottles or other sealed containers.
It is estimated that such a tax could raise as much as PHP 10.5 billion in extra tax revenues per year.

Shanaka Peiris claimed that the tax would be a “…good government measure for better outcomes and also more revenues.”

He also added that the IMF supports the imposition of higher excise taxes on petroleum, as an effort to reduce the government’s reliance on petrol, and the subsequent negative effects of falling oil prices around the world.

Photo By: Horia Varlan