The Marcos administration has announced the revival of a taxation plan targeting unhealthy food and sugary beverages.
This initiative aims to tackle health issues, particularly among Filipino children, while also generating much-needed revenue for the government.
Department of Finance (DOF) Secretary Benjamin Diokno revealed to reporters on Wednesday night that the DOF and the Department of Health (DOH) are jointly advocating for the imposition of the taxes.
&ldquo;The DOF and the Department of Health (DOH) are jointly pursuing a junk food and sweetened beverage tax as a proactive measure to tackle diabetes, obesity, and non-communicable diseases related to poor diet,&rdquo; said Diokno.
Under the proposed plan, prepackaged food products lacking nutritional value would be subjected to a tax of P10 per 100 grams or P10 per 100 milliliters.
The implementation of such taxes is expected to result in a significant annual reduction of 21% in the consumption of salty foods.
Diokno further explained that this tax would be applicable to products exceeding the specified fat, salt, and sugar thresholds set by the DOH.&nbsp;
This includes items such as confectioneries, snacks, desserts, and frozen confectioneries.
Additionally, the DOF intends to double the existing tax rate on sweetened beverages outlined in the TRAIN law to P12 per liter, regardless of the type of sweetener used.
Diokno emphasized that the tax rate would be adjusted annually to account for inflation, while exemptions would be eliminated to broaden the tax base.
&ldquo;These measures aim to strengthen the effectiveness of the sweetened beverage tax by further discouraging the consumption of such beverages," he explained.
Since the introduction of the excise tax on sweetened rinks in 2018 under the TRAIN law, the national government has been generating an annual income of approximately P40 billion.
According to data from the DOF, the tax on sweetened drinks has resulted in a total revenue of P213.6 billion from 2018 to 2022.
Diokno estimates that the proposed new tax package could generate an additional income of P76 billion per year, which could be allocated to important socioeconomic initiatives such as the Department of Social Welfare and Development's (DSWD) food stamp program.

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Marcos admin revives plan to tax junk food, soft drink