MANILA, Philippines - A proposed law that seeks to impose additional taxes on soft drinks and carbonated beverages has received the backing of the Department of Finance.
Nueva Ecija Rep. Estrellita B. Suansing has filed a bill seeking to impose a 10% ad valorem tax on soft drinks, which is currently subject to 12% value added tax (VAT). The measure is expected to generate around P10.5 billion in revenues.
Finance Undersecretary Jeremias N. Paul, Jr. said details of the bill need to be "fine-tuned."
"The proposal did not emanate from us... (But) we are supportive of this congressional initiative. The details still need to be fine-tuned," he said.
Under House Bill 3365, revenues from the soft drink tax will be used for the government's "rehabilitation fund" which will finance housing, road construction and other infrastructure projects for areas affected by natural calamities.
The bill also aims to discourage the consumption of soft drinks and carbonated beverages, which is said to be the cause of health problems such as obesity, diabetes and tooth decay, among others.