WHO Praises Tax Hike on Beverages: Roque

Presidential Spokesperson Harry Roque on Saturday said the tax increase on sweetened beverages is actually beneficial to the Filipino people that even the World Health Organization (WHO) has praised the government for doing so, contrary to claims that newly-enacted Tax Reform for Acceleration and Inclusion (TRAIN) Act is blamed for  the sudden 3-peso price hike of softdrinks.

“No. 1, the tax on sugar-based softdrinks was actually praised by the WHO as a means of promoting public health because it would discourage the drinking of very sweet softdrinks,” Roque said in press briefing at the Philippine Information Agency regional office here. “Some public schools are not even allowed to sell softdrinks to our children.”

“So, in that sense TRAIN will raise revenues from products which we consider as not being too healthy at the same time promoting public health. But I underscore the fact that most of the basic commodities, even if they were levied additional excise tax, it was at a minimum level,” Roque added.

On concerns that some businessmen are taking advantage of TRAIN as reason for imposing undue price increases, Roque said these unscrupulous traders must be reported to the Department of Trade and Industry (DTI).

“Isumbong po natin yan sa DTI because meron pong nilalabag na batas kapag sila’y nagsasamantala sa pagtaas ng presyo at sinisisi sa TRAIN, hindi naman pala napupunta sa gobyerno (Let’s report them to the DTI because they are violating the law when they take advantage of increasing prices and blame it on TRAIN while the proceeds don’t go to the government’s coffers). Yan po ay pinagbabawal at pinapatawan ng parusa (That is illegal and punishable by law),” Roque said.

When told that transport groups are preparing to petition for fare increases when the excise tax on fuel gets fully implemented, Roque said “that’s within their right.”

“That’s pursuant to the law, and that’s the procedure. Jeepney operators cannot just impose unilaterally hike in fare,” he said.

Roque said the Land Transportation Franchising and Regulatory Board is in “a better position” and is the legal agency that would decide whether or not there should be a fare hike as a result of TRAIN.

“Uulitin ko po, ang TRAIN ay nakakabuti dahil unang-una ay yong kumikita po ng Php250,000 pababa hindi na po magbabayad ng buwis, at yong mga kumikita ng mataas sa Php250,000 ay mas maliit po ang babayaran nilang buhis (I’ll say it again, TRAIN is beneficial because first and foremost those earning Php250,000 and less are exempted from paying income taxes, and those earning over Php250,000 would only pay minimal taxes),” Roque said.

He added that he learned from Department of Finance Secretary Sonny Dominguez that the overall contribution of TRAIN to the inflation is not even 1 percent.