A proposed P20 increase in the excise tax on sweetened beverages could push up drink prices and put further pressure on consumers and small retailers, the Beverage Industry Association of the Philippines (BIAP) warned.
BIAP president Juan Lorenzo Tañada urged lawmakers to reconsider the proposed tax hike, arguing that beverage consumption has already fallen substantially since the levy was introduced in 2018.
“The tax was supposed to make us healthier. It has not. More of the same will not produce different results,” Tañada said.
BIAP cited Bureau of Internal Revenue data showing beverage consumption declined 9.25 percent in 2025. It said Department of Finance projections indicate sales volumes could fall another 27.2 percent by 2027 if the higher tax is imposed.
The group said the additional levy would eventually be reflected in retail prices, affecting households as well as manufacturers, distributors, and small retailers such as sari-sari stores that depend on beverage sales.
Tañada said another tax increase would come at a difficult time for consumers already facing elevated prices for food and other basic necessities.
BIAP also questioned whether higher beverage taxes would deliver the intended health benefits, noting that overweight and obesity rates have continued to rise despite declining beverage consumption.
The group argued that obesity, diabetes, and other noncommunicable diseases have multiple causes and require broader measures covering nutrition, healthcare access, physical activity, and overall diet.
The government, however, considers sweetened-beverage taxation one tool to discourage excessive sugar consumption while raising funds for health and nutrition programs.
“We call on lawmakers to review the evidence, listen to all stakeholders, and reevaluate a tax increase,” Tañada said.
