The Joint Foreign Chambers (JFC) yesterday appealed to government to carefully reassess and reconsider its plan to impose tax on junk food and increase the levy on sugar sweetens beverages (SSB), saying the move is inflationary and discriminatory.
“While we recognize the need for government to boost revenues and support initiatives to improve the health and well-being of Filipinos… we believe it is not the right time to introduce additional taxes on products primarily consumed by middle and lower middle-class households because the country is still recovering from the pandemic and a prolonged period of high inflation,” the group said in a statement].
The JFC added the proposal would also affect micro and small enterprises that rely on selling these products as a source of income.
Instead, the group recommend that government fully study first the impact on consumption and health of the existing SSB tax imposed under Republic Act 10963 before any additional taxes are imposed.
JFC also recommended the prioritization of improvements to tax administration–such as in the proposed Ease of Paying Taxes Act–and non- tax interventions as alternative, non-inflationary measures to raise government revenues and improve health outcomes of Filipinos.
“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. This could potentially reduce competition in the market to the detriment of Filipino consumers and the growth of the economy driven by consumption,” the group said.
The JFC is composed of the American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Inc., Korean Chamber of Commerce Philippines and the Philippine Association of Multinational Companies Regional Headquarters, Inc.
