Industry groups are calling on the government to review a proposal to sharply raise excise taxes on sweetened beverages under the ProGRESS Bill, warning it would hurt local sugar farmers, businesses and consumers while raising questions over its real benefits.
The Philippine Sugar Millers Association says the planned rise—from ₱6 to ₱20 per liter for regular sweetened drinks and from ₱12 to ₱40 per liter for those using high-fructose corn syrup, plus annual 5 percent increases—comes at a difficult time for the domestic sugar sector already hit by disease, drought, rising costs and poor demand.
It points out the policy appears contradictory, as the government supports sugar farmers on one hand yet risks cutting demand for their produce on the other.
Lower beverage sales are projected to drop by nearly 28 percent by 2027 if the measure passes, meaning factories would buy less sugar and push prices further down at farmers’ expense, with little relief coming from proposed income tax changes that do not help agricultural communities.
The Beverage Industry Association of the Philippines also opposes the timing, noting weak economic growth, high inflation driven by food and fuel costs, and how the higher tax would hurt ordinary shoppers and sari-sari stores that rely heavily on beverage sales.
Experts add there is still a need to verify how effective such a tax actually is in improving public health, saying obesity and diet issues depend on many more factors than pricing alone, and that broad agreement among stakeholders is needed before pushing through major policy changes.
