The Joint Foreign Chambers of the Philippines (JFC) is calling the government to reconsider plans to levy new taxes on junk food and raise the existing tax on sugar-sweetened beverages, which would be costly for consumers and discriminatory against some firms.
In a statement issued on Thursday, JFC stated that while they recognize the need for the government to increase revenues and support initiatives to improve Filipinos' health and well-being, they recommend that any proposal to impose additional taxes be carefully reconsidered.
It was also considered that because the country is still recovering from the epidemic and a lengthy period of high inflation, it is not the ideal moment to impose more taxes on products predominantly eaten by middle- and lower-middle-class households.
Finance Secretary Benjamin Diokno recently announced that the Departments of Finance and Health (DOH) are working together to implement a junk food and sweetened beverage tax to raise money while tackling diseases associated with a poor diet.
The proposed tax policy is estimated to add P76 billion to state coffers while reducing junk food consumption by 21%.
Aside from the proposed levies' inflationary impact on Filipino consumers, the JFC observed that the proposal would also hurt micro and small businesses that rely on selling these products as a source of revenue.
"Imposing additional taxes will only strain the capacity of businesses in affected sectors to continue operations and grow their businesses, especially when issues related to the supply of certain raw materials remain unresolved," the group said.
It said that this might potentially diminish market competitiveness to the harm of Filipino consumers as well as the general economy, which is driven by spending.
The JFC is made up of the American Chamber of Commerce of the Philippines, the Australian-New Zealand Chamber of Commerce of the Philippines, the European Chamber of Commerce of the Philippines, the Japanese Chamber of Commerce and Industry of the Philippines Inc., the Korean Chamber of Commerce Philippines, and the Regional Headquarters of the Philippine Association of Multinational Companies Inc.
While expressing support for the proposed additional levies, the Management Association of the Philippines (MAP) previously stated that the proceeds should be used to fund research and development as well as the creation of more affordable, nutritious food and food supplements.
