The Bureau of Internal Revenue (BIR) must impose additional taxes on luxury items and cosmetics instead of junk food, suggested Senator Raffy Tulfo on Sunday, July 2.
In a statement, Tulfo said the poorest of the poor heavily rely on the affordable food items, which they consider as a necessity instead of luxury, to survive.
He noted that indigents even consume junk food as viands to accompany rice.
Tulfo said imposing additional taxes on the cheap food items could redound to depriving them of means to fill their hungry stomachs.
Instead, Tulfo asked the BIR to train its sights on luxury items, such as food supplements, protein bars, energy bars, slimming drinks, and cosmetic products.
“Kung ang pakay nila ay para makalikom ng dagdag kita para sa kaban ng bayan mula sa mga consumer products, bakit ‘di nila punteryahin ang mga luxury items gaya ng mga food supplements, protein bars, energy bars, slimming drinks pati na maging mga cosmetic products (If their plan is to raise taxes for the country, why don’t they tax luxury items like food supplements, protein bars, energy bars, slimming drinks and cosmetic products)?” Tulfo said.
Under the proposed tax program, the Department of Finance plans to impose a P10 per 100 grams or P10 per 100 milliliters tax on pre-packaged foods lacking nutritional value next year, according to Secretary Benjamin Diokno.
These include confectioneries, snacks, desserts, and frozen confectioneries, that exceed the specified thresholds for fat, salt, and sugar content.
“The Department of Finance and the Department of Health are jointly pursuing a junk food and sweetened beverage tax as a proactive measure to tackle diabetes, obesity, and non-communicable diseases related to poor diet,” Diokno told reporters in a Viber message last month.
Diokno said the DOF also intends to increase the sweetened beverage tax rate under the Tax Reform for Acceleration and Inclusion law to PHP12 per liter, regardless of the type of sweetener used.
The junk food and sweetened beverage tax package is projected to generate an additional PHP76 billion during the first year and result in a 21 percent reduction in the consumption of junk food, Diokno added.PNA