The government should consider a higher tax on sugar-sweetened beverages (SSBs) to offset inflation and fund the “First 1000 Days Grant,” which supports the nutritional needs of Pantawid Pamilyang Pilipino Program (4Ps) members, including mothers breastfeeding and underage children aged two, according to one of the co-founders of Action for Economic Reforms (AER).
“The inflation rate has been quite high in recent years, but the sweet drinks tax rate is fixed at P6 per volume per liter. So the real value of the six pesos has decreased since the introduction of the tax,” said Filomeno S. Sta. Ana III, coordinator of AER, said in an interview during the 2i.e day of the Department of Health (DOH) media conference in Baguio City on Wednesday.
To ensure the effectiveness of tax rates and increase revenues, Mr. Sta. Ana quoted the proposal of ANACALUSUGAN party-list representative Ray Florence Reyes on the tax increase.
“So a rate higher than P9, maybe even P12 will be good. A tax structure that includes the function that automatically indexes tax inflation is also very welcome, which is very similar to the design of the tax on tobacco and alcohol. ” he said.
“We need new revenues in light of the limited budgetary space we have, in light of the pressure to spend money on important development projects and the problem of nutrition.”
Revenue from a higher SSB tax could be the ideal funding source for the ‘First 1000 Days Grant’ model, Mr Sta said. said Ana, which will require a budget of P2.6 billion to P2.7 billion when rolled out in 2025, according to the Department of Social Welfare and Development (DSWD).
“Where do we get the resources (funds) from, and it is most sensible that such new resources are obtained from a tax such as the tax on sweet drinks, (since it is somehow linked to the issue of nutrition)” , said Mr. Sta. said Ana.
He also stressed that the government should not hesitate to impose health taxes, such as an increased tax on sugar-sweetened beverages (SSBs), as these have been proven to reduce obesity concerns and generate revenue for health initiatives and economic growth.
“Let’s do it, let’s push for a tax on sweets and drinks, let’s push for good taxes… not all taxes will hurt the economy right now. investment and growth,” said Mr Sta. Ana said. – Edg Adrian A. Eva