New tax on sugar-sweetened beverages lauded by WHO
HOW SWEET IT IS. New tax provisions on sweetened drinks might just take us one step closer to a healthier Philippines.
The World Health Organization (WHO) lauded the Philippines for its new tax provisions on sugar-sweetened beverages (SSB). These provisions are part of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
“The World Health Organization commends the Philippines as it passes a landmark law with new tax provisions for sugar-sweetened beverages. The Tax Reform for Acceleration and Inclusion Act provides a P6 per liter tax (approximately 14 percent increase in price) for caloric and noncaloric sweetened beverages,” the health organization said in a statement.
According to the WHO, evidence has shown that SSB tax can lessen people’s consumption of sugars and help prevent obesity as well as noncommunicable diseases like cardiovascular disease and diabetes.
The number of people in the country who are having trouble with being overweight and obesity has been steadily increasing. Meanwhile, diabetes and cardiovascular disease currently account for four out of ten deaths among Filipinos.
“Taxation of SSBs is a great step forward in protecting the health of Filipinos. Experience in other countries has shown positive results. Mexico, for instance, implemented 10-percent excise tax on SSBs in 2014 and demonstrated an average reduction of 7.6 percent in purchases of taxed beverages in its first two years of implementation. The reduction in consumption is predicted to have positive impacts on health outcomes and reductions in health-care expenses in Mexico,” the health organization also further stated.
Indeed, the new tax provisions are promising. Moreover, the WHO said that the “revenue to be generated from the SSB taxation also has the potential to be utilized for health-promoting purposes.”
via Manila Bulletin / Charina Clarisse Echaluce
