THE Sugar Regulatory Administration (SRA) said farmers are pushing to keep only drinks sweetened with domestically produced sugar at P6 per liter, while charging drinks made with all other sweeteners P40 per liter.
SRA Administrator Pablo Luis S. Azcona said on Monday that the two-tier tax structure currently charges P6 per liter for drinks sweetened with sugar and artificial sweeteners, while those sweetened with high-fructose corn syrup are charged P12. Congress is currently considering tax rates of P20 and P40 respectively.
“Tier 1 (applies to) pure sugar, locally manufactured beverage, locally manufactured sugar and will be left at P6,” the official said. All other beverages and imported sweeteners would be moved to the higher tier, up to P40 if needed.
Mr. Azcona said farmers believe the tax system should encourage the use of domestic sugar. “All the other sweeteners are imported,” he added.
The SRA said in 2018, the favorable tax treatment of artificial sweeteners alongside pure sugar led to a shift in favor of artificial sweeteners because of their cost advantage over pure sugar.
Beverage makers and industrial users consume roughly 60% of the national sugar supply.
Mr. Azcona noted that finished beverage imports fall outside the Department of Agriculture and SRA’s mandate and are instead regulated by the Food and Drug Administration. While the SRA’s jurisdiction covers only raw materials such as sugar and alternative sweeteners, it actively monitors such imports to protect farmers. — Moureen Ylessandra B. Dizon
